Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 1, Problem 2.3Q
Summary Introduction
Case Summary: The difference in prices that must be paid by customers for the same product at three different locations is the core of the case scenario. The 20-ounce water bottle of a particular brand is being sold at three different price levels; $5, $2 and $0.37 at concerts/ sports events, convenience stores and supermarkets respectively. The scenario has caused confusion among customers as they pay different amounts for the same product.
Interpretation: The reason for prices of water bottles being different in sports events and convenient stores and what sports events provide over convenience stores.
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The following information
was extracted from the
books of Babel Company
for the production of
rubber products for the
year 2020: The number
of units sold of product
(A) amounted to 60
units The selling price of
one unit of product (A)
is 100,000 dinars The
variable cost of producing
one unit of product (A)
is 35,000 dinars The
fixed cost of the product
line (A) is 1,000,000
dinars annually, find the
following: break-even point
(quantities), break-even
point (values), contribution
margin per unit of product
(A), percentage of safety
limit, operating income
snip
Aling Minda is operating a buy and sell business, she sells broomsticks (walis
tingting) in her stall at a local market. She gets her broomsticks from a local supplier
for 25 pesos each. She then adds 50 percent mark-up on each broomstick. Every day,
aling Minda can sell 30 broomsticks a day.
Use the template below and fill in the necessary figures based on the
scenario. Remember to use the factors to consider in projecting revenues and refer to
tables 1, 2 and 3 as your guide.
Table 1
Projected Daily Revenue
Name of Business
Projected
Projected
Cost
Volume
Mark-up
Selling
Revenue
per
(D)
_%
Price
(E)
Merchandise/
Unit
Average No.
(B)
(C)
Products
(A)
of Items
(Daily)
Sold (Daily)
(B)= (A x
(A)
(C)= (A+B)
(D)
(E) =(C x D)
.50)
Total
Chapter 1 Solutions
Practical Operations Management
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3P
Ch. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Prob. 17PCh. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 1.1QCh. 1 - Prob. 1.2QCh. 1 - Prob. 1.3QCh. 1 - Prob. 2.1QCh. 1 - Prob. 2.2QCh. 1 - Prob. 2.3QCh. 1 - Prob. 3.1QCh. 1 - Prob. 3.2QCh. 1 - Prob. 3.3QCh. 1 - Prob. 3.4Q
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