Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 x 50equals the total rooms rented for the year). Tim's cost to clean a room is $12.50 The Duffy's Maid Service quote is $18.50 per room plus a fixed cost of $26,000 for sundry items such as uniforms with the motel'sname. Tim's annual fixed cost for space, equipment, and supplies is $60,000.Based on the given information related to costs for each of the options, the crossover point for Tim =room nights (round your response to the nearest whole number)4

Analysis of total cost helps businesses make informed financial decisions. Understanding the total…

Answered: Tim Urban, owner/manager of Urban's…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $39,000 for A and $21,000 for B; variable costs per unit would be $10 for A and $11 for B; and revenue per unit would be $15. a. Determine each alternative’s break-even point in units. (Round your answer to the nearest whole amount.) b. At what volume of output would the two alternatives yield the same profit (or loss)? (Round your answer to the nearest whole amount.) c. If expected annual demand is 16,000 units, which alternative would yield the higher profit (or the lower loss)?
The UFG (a college) has raised the following operational problems: 1. The surveillance system that is currently outsourced does not comply with security in certain sectors and at certain times, for which many complaints have been received from the university community and workers, as well as employees of neighboring companies. Currently, there are a group of 25 guards for the entire university campus that includes buildings A, B, C, D, E, Postgraduate, and Rectory, as well as parking lots. Your person is asked to raise a) Possible solution alternatives b) What cash flows will be taken into account to evaluate the alternatives. Please be specific, with your approaches.
Define the Process selection and capacity planning influence system design?
Explain Supply Chain Measures for Core Processes?
The XYZ company has two plants producing "K Specials". It has the following expected data for the next month's operations. Variable (incremental) costs vary linearly from zero production to maximum capacity production. plant A plant B Max. Capacity, units 1,000 800 Total fixed cost 750,000 480,000 Variable (incremental) Costs Max. Capacity 900,000 800,000 Performance has not been good, so the company expects to receive domestic orders for only 1,200 units next month at a price of 1,400 per unit. How should the production be distributed between the plants for optimum economic operation? A. Plant A should produce 800 units and 400 units for Plant B. B. Plant A should produce 1,000 units and 200 units for Plant B. C. Plant A should produce 700 units and 500 units for Plant B. D. Plant A should produce 900 units and 300 units for Plant B.
The production manager asked the foreman to achieve a target production of 200 units per day, but he doesn't give him the authority to requisition tools and materials from the stores department. Can the production manager blame the foreman if he is not able to achieve the desired target? Give reasons.
I want an actual operation and maintenance plan of a sports stadium. I do not want guidelines in developing a plan. Can I be provided with an actual plan?
Answer for type B
Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?
Analyze the capacity of the process.
Explain the importance of conducting a business impact analysis (BIA) in the context of continuity planning.
MagneticCompany has made the following information available for its production facility for the current month. Fixed overhead was estimated at 19,000 machine hours for the production cycle. Actual machine hours for the period were 18,900, which generated 3,900 units. Material purchased (80,000 pieces) P314,000 Material quantity variance P6,400 U Machine hours used (18,900 hours) VOH spending variance P50 U Actual fixed overhead P60,000 Actual labor cost P40,120 Actual labor hours 5,900 Magnetic Company’s standard costs are as follows: Direct material 20 pieces @ P4 per piece Direct labor 1.5 hours @ P6 per hour Variable overhead (applied on a machine hour basis) 4.8 hours @ P2.50 per hour Fixed overhead (applied on a machine hour basis) 4.8 hours @ P3 per hour Determine the following items: h. labor efficiency variance i. actual variable overhead…

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