PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
Question
Book Icon
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
Check Mark

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 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:

Revenue retrieval=[Total resale revenue+Total recycling revenueTotal processing costTotal disposal cost]

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

Revenue retrieval amount=$8.45+$12.16$10.28$5.80=$4.53

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
Check Mark

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:

Revenue retrieval=[Total resale revenue+Total recycling revenueTotal processing costTotal disposal cost]

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

Revenue retrieval amount=$8.28+$11.93$8.85$6.30=$5.06

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
Check Mark

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

PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB

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
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
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
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.