Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 11, Problem 24P
(a):
To determine
Calculate the net cash flow.
(b):
To determine
Calculate the present worth without inflation.
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Assume this is January 2019.
You’re running a Wine company that has 80% domestic sales and 20% export sales as measured by shipped bottles.
Of the domestic sales, 50% is sold via the restaurant channel, 30% is sold to supermarket chains.
You production capacity for this year 2019 is for 100,000(Q) bottles (from grapes processed in 2018) if you bottle this already this year. This wine is currently kept in wine casks (տակառ)․ If aged the wine will be more valuable. Land, cellar and casket capacity has been fixed since the establishment of your château.
These are prices received (P) and costs per bottle (AC) per sales channel:
Domestic Restaurant channel: Price – 3300AMD, Total Cost (AC) – 1900AMD
Domestic Retail/supermarket channel: Price – 3600AMD, Total Cost – 1900AMD
Export channel: Price – 13USD, Total Cost (incl. shipment) – 4100AMD
Current exchange rate is 485AMD per 1 USD
In 2018 economy grew 7% in real, inflation adjusted terms. For 2019 expectations of economic performance…
Assume this is January 2019.
You’re running a Wine company that has 80% domestic sales and 20% export sales as measured by shipped bottles.
Of the domestic sales, 50% is sold via the restaurant channel, 30% is sold to supermarket chains.
You production capacity for this year 2019 is for 100,000(Q) bottles (from grapes processed in 2018) if you bottle this already this year. This wine is currently kept in wine casks (տակառ)․ If aged the wine will be more valuable. Land, cellar and casket capacity has been fixed since the establishment of your château (գինետուն).
These are prices received (P) and costs per bottle (AC) per sales channel:
Domestic Restaurant channel: Price – 3300AMD, Total Cost (AC) – 1900AMD
Domestic Retail/supermarket channel: Price – 3600AMD, Total Cost – 1900AMD
Export channel: Price – 13USD, Total Cost (incl. shipment) – 4100AMD
Current exchange rate is 485AMD per 1 USD
In 2018 your company exported 11000 bottles, what was your production unit Capacity…
Assume this is January 2019.
You’re running a Wine company that has 80% domestic sales and 20% export sales as measured by shipped bottles.
Of the domestic sales, 50% is sold via the restaurant channel, 30% is sold to supermarket chains.
You production capacity for this year 2019 is for 100,000(Q) bottles (from grapes processed in 2018) if you bottle this already this year. This wine is currently kept in wine casks (տակառ)․ If aged the wine will be more valuable. Land, cellar and casket capacity has been fixed since the establishment of your château (գինետուն).
These are prices received (P) and costs per bottle (AC) per sales channel:
Domestic Restaurant channel: Price – 3300AMD, Total Cost (AC) – 1900AMD
Domestic Retail/supermarket channel: Price – 3600AMD, Total Cost – 1900AMD
Export channel: Price – 13USD, Total Cost (incl. shipment) – 4100AMD
Current exchange rate is 485AMD per 1 USD
Is your product likely categorized by high or low price elasticity of demand?
Following from…
Chapter 11 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - An annuity provides for 10 consecutive end-of-year...Ch. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 30PCh. 11 - Prob. 31PCh. 11 - Prob. 1STCh. 11 - Prob. 2STCh. 11 - Prob. 3ST
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