EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
Author: Munson
Publisher: VST
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
EBK 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_forwardDefine delayed differentiation with example,why manufacturer use it?arrow_forwardWhen we say "FMS option," what exactly do we mean?arrow_forward
- Touché 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_forwardPick a favorite product (it must be a thing, like a flux capacitor, not a food item). Discuss the enhanced product, the core product, and the essential benefit of the product. Explain each factor in detail. Using this same favorite product , differentiate the product from that of a competing product. Address the features, performance quality, conformance quality, durability, reliability, and repairability of favorite product from that of a competing product. Explain the basis of findings.arrow_forwardDesign 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_forward
- Product Mix Expansion What is Product Mix Expansion? When the Product Mix Expansion is needed? Write appropriate PLC stage or economic conditions or technological advancement. How you can do it? Link to relevant product line strategy Product Mix Contraction What is Product Mix Contraction? When the Product Mix Contraction is needed? Write appropriate PLC stage or economic conditions or technological advancement. How you can do it? Link to relevant product line strategy Product Mix Alteration What is Product Mix Alteration? When Product Mix Alteration is needed? Write appropriate PLC stage or economic conditions. How you can do it? Link to relevant product line strategy Product Mix Positioning What is Product Mix Positioning? When Product Mix Positioning is needed? Write appropriate PLC stage or economic conditions. 3. How you can do it? Link to relevant product line strategyarrow_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_forwardEnvironmental sustainability concerns have declined steadily over the past three decades Select one: True Falsearrow_forward
- Explain 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_forward"It is impossible for a firm to produce a relatively low-cost, yet somewhat highly differentiated product.” Is this statement true or false? Explain your answer providing examples where feasible"arrow_forwardEasy Play Audio/Video Corp. has been selling audio and video equipment to the international market for six years. Recently, the company decided to drop its line of televisions because the United States is importing televisions at a lower cost than the company can make their television. Which stage of the product life cycle theory is the company currently in? A. Stage 1 B. Stage 2 C. Stage 3 D. Stage 4arrow_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.