Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 5.S, Problem 14P
a)
Summary Introduction
To determine: The revenue retrieval for GF.
Introduction: The revenue is the income obtained from the sale of products and services; it can also refer to any assets or capital related with the main operations of the firm before any expenses or costs are deducted.
a)
Expert Solution
Answer to Problem 14P
The revenue retrieval amount for GF Deluxe is $4.53.
Explanation of Solution
Given information:
GF Deluxe:
| Part | Resale revenue per unit | Recycling revenue per unit |
| Disposal cost per unit |
| Metal frame | $3.27 | $4.78 | $1.05 | $0.85 |
| Battery | $0.00 | $3.68 | $6.18 | $3.05 |
| Motor housing | $3.93 | $2.95 | $2.05 | $1.25 |
| Trimmer head | $1.25 | $0.75 | $1.00 | $0.65 |
PM:
| Part | Resale revenue per unit | Recycling revenue per unit | Processing cost per unit | Disposal cost per unit |
| Metal frame | $3.18 | $3.95 | $1.15 | $0.65 |
| Battery | $0.00 | $3.68 | $4.15 | $3.00 |
| Motor housing | $4.05 | $3.45 | $2.45 | $1.90 |
| Trimmer head | $1.05 | $0.85 | $1.10 | $0.75 |
Formula:
Calculate the revenue retrieval amount for GF Deluxe:
| Part | Resale revenue per unit | Recycling revenue per unit | Processing cost per unit | Disposal cost per unit |
| Metal frame | $3.27 | $4.78 | $1.05 | $0.85 |
| Battery | $0.00 | $3.68 | $6.18 | $3.05 |
| Motor housing | $3.93 | $2.95 | $2.05 | $1.25 |
| Trimmer head | $1.25 | $0.75 | $1.00 | $0.65 |
| Total | $8.45 | $12.16 | $10.28 | $5.80 |
| Total retrieval | $4.53 | |||
Table 1
The revenue retrieval amount is calculated by subtracting all the costs involved from the resale revenue obtained which is $4.53.
Hence, the revenue retrieval amount for GF Deluxe is $$4.53.
b)
Summary Introduction
To determine: The revenue retrieval for PM.
b)
Expert Solution
Answer to Problem 14P
The revenue retrieval amount for PM is $5.06.
Explanation of Solution
Given information:
GF Deluxe:
| Part | Resale revenue per unit | Recycling revenue per unit | Processing cost per unit | Disposal cost per unit |
| Metal frame | $3.27 | $4.78 | $1.05 | $0.85 |
| Battery | $0.00 | $3.68 | $6.18 | $3.05 |
| Motor housing | $3.93 | $2.95 | $2.05 | $1.25 |
| Trimmer head | $1.25 | $0.75 | $1.00 | $0.65 |
PM:
| Part | Resale revenue per unit | Recycling revenue per unit | Processing cost per unit | Disposal cost per unit |
| Metal frame | $3.18 | $3.95 | $1.15 | $0.65 |
| Battery | $0.00 | $3.68 | $4.15 | $3.00 |
| Motor housing | $4.05 | $3.45 | $2.45 | $1.90 |
| Trimmer head | $1.05 | $0.85 | $1.10 | $0.75 |
Formula:
Calculate the revenue retrieval amount for PM:
| Part | Resale revenue per unit | Recycling revenue per unit | Processing cost per unit | Disposal cost per unit |
| Metal frame | $3.18 | $3.95 | $1.15 | $0.65 |
| Battery | $0.00 | $3.68 | $4.15 | $3.00 |
| Motor housing | $4.05 | $3.45 | $2.45 | $1.90 |
| Trimmer head | $1.05 | $0.85 | $1.10 | $0.75 |
| Total | $8.28 | $11.93 | $8.85 | $6.30 |
| Total retrieval | $5.06 | |||
Table 2
The revenue retrieval amount is calculated by subtracting all the costs involved from the resale revenue obtained which is $5.06.
Hence, the revenue retrieval amount for PM is $5.06.
c)
Summary Introduction
To determine: The better model in terms of design.
c)
Expert Solution
Answer to Problem 14P
The better model in terms of design is PM.
Explanation of Solution
Given information:
GF Deluxe:
| Part | Resale revenue per unit | Recycling revenue per unit | Processing cost per unit | Disposal cost per unit |
| Metal frame | $3.27 | $4.78 | $1.05 | $0.85 |
| Battery | $0.00 | $3.68 | $6.18 | $3.05 |
| Motor housing | $3.93 | $2.95 | $2.05 | $1.25 |
| Trimmer head | $1.25 | $0.75 | $1.00 | $0.65 |
PM:
| Part | Resale revenue per unit | Recycling revenue per unit | Processing cost per unit | Disposal cost per unit |
| Metal frame | $3.18 | $3.95 | $1.15 | $0.65 |
| Battery | $0.00 | $3.68 | $4.15 | $3.00 |
| Motor housing | $4.05 | $3.45 | $2.45 | $1.90 |
| Trimmer head | $1.05 | $0.85 | $1.10 | $0.75 |
From Table 1 and 2, it can be inferred that PM has better design alternatives in terms of revenue retrieval because it has the highest revenue retrieval.
Hence, the PM is the better design alternative because it has a higher revenue retrieval opportunity.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Touché Toiletries, Inc. has developed an addition to its Lizardman Cologne line tentatively branded Ode d’Toade Cologne. Unit variable costs are 45 cents for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’Toade Cologne is priced at $7.50 for a three-ounce bottle. How many bottles of Ode d’Toade must be sold to break even?
What is the relationship between gross variable costs, total fixed costs, average variable costs, and average fixed costs when the cost driver changes?
Touch Toiletries, Inc. has developed an addition to its Lizardman Cologne line tentatively branded Oded Troade Cologne. Unit varible cost are 45 cent for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Oded Toade Cologne is priced at $750 for a three-ounce bottle. How many bottles of Oded Toade must be sold to break even?
Chapter 5 Solutions
Principles Of Operations Management
Ch. 5.S - Prob. 1DQCh. 5.S - Prob. 2DQCh. 5.S - Prob. 3DQCh. 5.S - Prob. 4DQCh. 5.S - Prob. 5DQCh. 5.S - Prob. 6DQCh. 5.S - Prob. 7DQCh. 5.S - Prob. 1PCh. 5.S - Prob. 2PCh. 5.S - Prob. 3P
Ch. 5.S - Prob. 4PCh. 5.S - Prob. 5PCh. 5.S - Prob. 6PCh. 5.S - Prob. 7PCh. 5.S - Prob. 8PCh. 5.S - Prob. 9PCh. 5.S - Prob. 10PCh. 5.S - A Southern Georgia school district is considering...Ch. 5.S - Prob. 12PCh. 5.S - Prob. 13PCh. 5.S - Prob. 14PCh. 5.S - Prob. 15PCh. 5.S - Prob. 16PCh. 5.S - Prob. 17PCh. 5.S - Prob. 18PCh. 5.S - Prob. 19PCh. 5.S - Prob. 1.1VCCh. 5.S - Prob. 1.2VCCh. 5.S - Prob. 1.3VCCh. 5.S - Prob. 2.1VCCh. 5.S - Prob. 2.2VCCh. 5.S - Prob. 2.3VCCh. 5.S - Prob. 3.1VCCh. 5.S - Prob. 3.2VCCh. 5.S - Prob. 3.3VCCh. 5.S - Prob. 3.4VCCh. 5 - Prob. 1EDCh. 5 - Prob. 1DQCh. 5 - What techniques do we use to define a product? ...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Describe four organizational approaches to product...Ch. 5 - Explain what is meant by robust design.Ch. 5 - Prob. 9DQCh. 5 - What information is contained in a bill of...Ch. 5 - What information is contained in an engineering...Ch. 5 - What information is contained in an assembly...Ch. 5 - Prob. 13DQCh. 5 - Explain how the house of quality translates...Ch. 5 - Prob. 15DQCh. 5 - Prob. 16DQCh. 5 - Why are the direct interaction and surrogate...Ch. 5 - Prob. 18DQCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Construct a house of quality matrix for a...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prepare a bill of material for (a) a pair of...Ch. 5 - Prob. 10PCh. 5 - Prepare a script for telephone callers at the...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Residents of Mill River have fond memories of ice...Ch. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 1CSCh. 5 - Prob. 2CSCh. 5 - Prob. 3CSCh. 5 - Prob. 1VCCh. 5 - Prob. 2VCCh. 5 - Prob. 3VCCh. 5 - Prob. 4VC
Knowledge Booster
Similar questions
- give five examples of innovative green products. Express your opinion on whether it is a good product/approach and how to further make it betterarrow_forwardWhen we say "FMS option," what exactly do we mean?arrow_forwardTouché Toiletries, Inc. has developed an additionto its Lizardman Cologne line tentatively brandedOde d’Toade Cologne. Unit variable costs are45 cents for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’ToadeCologne is priced at $7.50 for a three-ounce bottle. How many bottles of Ode d’Toade must be sold to break even?arrow_forward
- Design the elements of the marketing mix for the electric cars you want to launch and that you think the company should consider to launch the electric carsarrow_forwardA reader wrote to Business Week (July 9 & 16, 2007) and noted: Americans have switched from Detroit Big Three vehicles to Honda and Toyota vehicles not for visual design features but for durability, reliability, good fuel consumption, and low full cost of operation. Detroit needs to offer five passenger, 35-mile-per-gallon vehicles with 100,000-mile bumper-to-bumper warranties over 10 years of ownership to cause satisfied Honda and Toyota buyers to switch.” What definitions of quality are implied in these comments? Why? A top Ford executive stated, “You can’t have great value unless you have great quality”. Comment on this statement. Do you agree? Why or why not?arrow_forwardWhat you can derive from these figures? Japan United States Figure 1-1 Warranty costs for transmissions. -Japan LSL United States Target Figure 1-2 Distributions of critical dimensions for transmissions. USLarrow_forward
- An _product like Head and Shoulders calls for offering a product virtually unchanged. * Adapted Licensed Invented Extended A shampoo manufacturer is considering entering a developing country. During the screening process of this country it is discovered that purchasing power is very low and many people might not be able to afford their product as it is presently sold in other markets. As a global marketer which of the following is the best course of action? * Evaluate the economic situation in that country and consider if a modified product might turn a reasonable profit Totally ignore this country because residents are poor Examine Industrialized markets instead Generalize that all developing countries such as this country are suffering from difficult economies situations and are not good markets to enterarrow_forwardExplain the meaning of the terms 'product under-costing' and 'product over-costing'. In your answer, provide an explanation of how they occur and can relate to eachother when estimating and quoting vehicle modifications. (80-100 words)arrow_forwardIdentify where each of the following products likely lie on a traditional Product Life Cycle. Justify each of your answers with the most current data and research you find on the Internet 1. Electric Car (Toyota Prius, Chevy Volt, Tesla, etc.)arrow_forward
- Identify where each of the following products likely lie on a traditional Product Life Cycle. Justify each of your answers with the most current data and research you find on the Internet (e.g. sales, product development, competition, consumer feedback, etc.) e) Soda (Coca Cola, Pepsi, Fanta, etc.)arrow_forwardBrand equity is a marketing term that describes a brand’s value. That value is determined by consumer perception of and experiences with the brand. If people think highly of a brand, it has positive brand equity. When a brand consistently under-delivers and disappoints to the point where people recommend that others avoid it, it has negative brand equity.Explain the brand asset valuator model andBrand Resonance model of brand equity to build a strong brand?arrow_forwardThe three major influences on pricing decisions are: costs, competitors, and customers. TRUE FALSEarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.