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Lubov Fominskaja [6]
3 years ago
9

Comfy Mattresses, Inc., is opening a new plant in Orlando, Florida. Ron Lane, distribution manager, has been asked to find the l

owest cost outbound logistics system. Given an annual sales volume of 24,000 mattresses, determine the costs associated with each option below
Business
1 answer:
romanna [79]3 years ago
8 0

Answer:

The question content is not complet. Here is the complete question I got from google

Comfy Mattresses, Inc., is opening a new plant in Orlando, Florida. Ron Lane, distribution manager, has been asked to find the lowest cost outbound logistics system. Given an annual sales volume of 24,000 mattresses, determine the costs associated with each option below.

a. Build a private warehouse near the plant for $300,000. The variable cost, including warehouse maintenance and labor, is estimated at $5 per unit. Contract carrier transportation costs $12.50 per unit on average. No external transportation services are necessary for shipment of mattresses from the plant to the warehouse in this scenario. The fixed warehouse investment can be depreciated evenly over 10 years.

b. Rent space in a public warehouse 10 miles from the plant. The public warehouse requires no fixed investment but has variable costs of $8 per unit. Outbound contract carrier transportation would cost $12.50 per unit on average. The carrier at charges $5 per unit to deliver the mattresses to the warehouse from the plant.

c. Contract the warehousing and transportation services to the Freeflow Logistic Company, an integrated logistics firm with a warehouse location 25 miles from the plan. Freeflow requires a fixed investment of $150,000 and charges $20 per unit for all services originating at the plant. The fixed investment covers a 10-year agreement with Freeflow.

d. Name a few advantages aside from cost that the low-cost alternative above may have over the other alternatives.

Explanation:

Let us weigh different options for Comfy Mattresses:

Option A

building cost for a private warehouse near the plant(one time fixed cost)  = $300,000

maintenance warehouse of  $ 5 per unit= (24000 X5) = $120,000

cost of contract carrier $12.50 per unit = (24000X12.50) = $300,000

Total cost = $420,000 $(120000+300000)

Depreciation @ 10% = $30,000

Total cost in a year = $450,000 (Total cost + Depreciation = $(420000 +30000))

Option 2

Variable cost=  (24000 X8) $192000

Transportation of outbound carrier = (24000X12.50) $300,000

Carrier charges from warehouse to plant= (24000 X5) $120,000

Total = $612,000 (192000+300000+120000)

Option 3

Company's freeflow Logistic - Fixed investment = $150,000

Other charges =  (24000 X20) = $480,000

Total = $630,000 = $(150000 + 480000)

The best option is the first option. The investment in the first  is more, but after deducting a depreciation of 10% every year the cost would be much less. The total cost in the first year  would be $750,000 if we take depreciation which is more than the 2nd and 3rd option.

The cost will be drastically reduced for the second year. It will  be $450,000, which covers the extra investment done in the warehouse during the first year. From the third year onward, the benefit of going with the first option will start showing.

If we are to  rate all the options, Option 3 would be second in order, after the first option. Here Comfy Mattresses Inc outsources all the services to a private vendor  by paying little extra amount than Option 2. Ina way all the risk as well as tension of transportation and running the plant is passed on the the vendor (Freeflow Logistic Company).

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JVL Inc. sells its only product for $10 per unit. Variable costs are $4 per unit and total fixed costs are $40,000. The company
natka813 [3]

Answer:

$9,000

Explanation:

Profit = Total revenue - Total cost

Total cost = Total fixed cost + Total variable cost

Fixed cost = $40,000

Variable costs = variable cost per unit × total output = $4 × 10,000 = $40,000

Total cost = $40,000 + $40,000 = $80,000

Total revenue = price × output = $10 × 10,000 = $100,000

Profit = $100,000 - $80,000 = $20,000

If sales increases by 1500, output would be 11,500

Total variable cost = 11500 × $4 = $46,000

Total cost = $40,000 + $46,000 = $86,000

Revenue = $10 x 11500 = $115,000

Profit = $115,000 - $86,000 = $29,000

Increase in profit = $29,000 - $20,000 = $9,000

I hope my answer helps you

4 0
3 years ago
Read 2 more answers
1. An assembly line with 30 activities is to be balanced. The total amount of time to complete all 30 activities is 60 minutes.
trapecia [35]

Answer:

a. What are the maximum and minimum cycle times?

The maximum cycle time is 60 minutes and the minimum cycle time is 2.4 minutes.

b. How much daily output will be achieved by each of those cycle times?

Daily output = CT = A/R

For max CT = 480/60 = 8 units per day

For min CT = 480/2.4 = 200 units per day.

2. In problem 1, suppose the line is balanced using 14 workstations and a finished product can be produced every 4.5 minutes.

a. What is the production rate in units per day?

CT = A/R or 4.5 = 480/R or R = 106.66 units/day

b. What is the assembly-line efficiency?

Efficiency = 60/[4.5(14)] =0.95 or 95.2% percent efficiency.

5 0
3 years ago
A cash-flow budget uses the same format as a cash-flow statement. It is prepared on a monthly basis and it reflects budgeted inc
RideAnS [48]

Answer:

Surplus/Deficit

2016 27920

January 4980.20

February 2265.55

March 2090.55

April 2005.55

May 2473.89

June-9061.11

Explanation:

Annual Budget

Scott and Mary Cash-Flow Statement

2017

2016 Jan. Feb. Mar. Apr. May June

Income

Deon'

Scott s salary 59,000 5162.5 5162.5 5162.5 5162.5 5162.5 5162.5

(59000/12*1.05)

Marys salary 53,1004557.75 4557.75 4557.75 4557.75 4557.75 4557.75

(53100/12*1.03)

Scott bonus 2016 5000 Jan 5900

Interest & Dividends 150 12.5 12.5 12.5 12.5 12.5 12.5

(150/12)

1.

Total Income 117250 15632.75 9732.75 9732.75 9732.75 9732.75 9732.75

Expenditures

Fixed expenses

Mortgage 14976 1248 1248 1248 1248 1248 1248

(14976/12)

Sott's Federal Income Tax 12800 2212.5 1032.5 1032.5 1032.5 1032.5 1032.5 [(salary+Bonus)*20%]

Scott's State Income Tax 3840 663.75 309.75 309.75 309.75 309.75 309.75 [(salary+Bonus)*6%]

Scott's Social Security Taxes4896 846.28 394.93 394.93 394.93 394.93 394.93

[(salary+Bonus)*7.65%]

Mary's Federal Income Tax 10620 911.55 911.55 911.55 911.55 911.55 911.55 (Salary*20%)

Mary's State Income Tax 3186 273.47 273.47 273.47 273.47 273.47 273.47 (Salary 6%)

Mary's Social Security Taxes 4062 348.67 348.67 348.67 348.67 348.67 348.67 (Salary*7.65%)

Property Taxes

2016 4100 June 4100

Property Insurance

2016 1200 June 1200

Medical Insurance 2400 240 240 240 300 240 300

Automobile Insurance and Registration

2016 700 May 175 June 175 (700/4)

Savings for auto purchase June500 500 500 500 500 500

2.

Total Fixed expenses 62780 7244.21 5258.86 5433.86 5318.86 5258.86 10793.86

Variable expenses

Food 1620 135 135 135 135 135 135 (1620/12)

Entertainment 3000 250 250 250 250 250 250 (3000/12)

Dining out 4700 391.67 391.67 391.67 391.67 391.67 391.67 (4700/12)

Electric 350 29.17 29.17 29.17 29.17 29.17 29.17

(350/12)

Water and sewer 2016 800 Jan 200.00 April 200.00 (800/4)

Heat 1250 208.33 208.33 208.33 208.33 - - (1250/6)

Cable TV 3000 250.00 250.00 250.00 250.00 250.00 250.00 (3000/12)

Telephone 600 50.00 50.00 50.00 50.00 50.00 50.00

(600/12)

Cell phone 900 75.00 75.00 75.00 75.00 75.00 75.00

(900/12)

Gifts 2016 2000 Jan 1000.00 (2000/2)

Personal care 600 50.00 50.00 50.00 50.00 50.00 50.00 (600/12)

Medical expenses 3700 308.33 308.33 308.33 308.33 308.33 308.33 (3700/12)

Vehicle gas and maintenance 2530 210.83 210.83 210.83 210.83 210.83 210.83 (2530/12)

Charitable contributions 1500 250 250 250 250 250 250

(3000/12)

Vacation June 6000

3.

Total Variable expenses 26550 3408.333 2208.33 2208.33 2408.33 2000 8000

4.Total expenses

(Addition of solution 2+ solution 3)

89330 10652.55 7467.2 7642.2 7727.2 7258.86 18793.86

5.SURPLUS/(DEFICIT)

(Solution1 Total Income-Solution 4 Total Expenses)

27920 4980.20 2265.55 2090.55 2005.55 2473.89 -9061.11

6 0
3 years ago
Bill Evans began Evans Distributors, a sporting goods distribution company, in January 20X1 and engaged in the transactions belo
mihalych1998 [28]

Answer:

Jan. 1

Dr Cash $55,750

Dr Supplies $7,800

Cr Common Stock $63,550

Jan. 2

Dr Purchases $11,850

Cr Cash $11,850

Jan. 3

Dr Accounts Receivable - Rivera Corporation, $ $1,010

Cr Sales Revenue $1,010

Jan. 4

Dr Purchases $2,420

Cr Accounts Payable - Tsang Company $2,420

Jan. 5

Dr Freight Expenses $220

Cr Cash $220

Jan. 10

Dr Sales Returns and Allowances $220

Cr Accounts Receivable - Rivera Corporation $220

Jan. 11

Dr Cash $790

Cr Accounts Receivable - Chu Corporation $790

Jan. 13

Dr Accounts Payable - Tsang Company $2,420

Cr Cash $2,420

Jan. 15

Dr Cash $7,620

Cr Sales Revenue $7,620

Jan. 15

Dr Accounts Receivable $1,315

Cr Bank Charges $39

Cr Sales Revenue $1,276

Jan. 16

Dr Equipment $1,915

Cr Cash $1,915

Jan. 17

Dr Equipment $230

Cr Cash $230

Jan. 18

Dr Purchases $6,300

Cr Accounts Payable - Terri Manufacturing $6,300

Jan. 20

Dr Accounts Receivable - Moloney Corp. $3,380

Jan. 21

Dr Purchases $2,480

Dr Freight Expenses $150

Cr Accounts Payable - Johnson Company $2,630

Jan. 27

Dr Accounts Payable - Terri Manufacturing $6,300

Cr Cash $6,300

Jan. 29

Dr Cash $3,380

Accounts Receivable - Moloney $3,380

Jan. 30

Dr Accounts Payable - Johnson Company $2,630

Cr Cash $2,630

Jan. 31

Dr Cash $8,225

Sales Revenue $8,225

Jan. 31

Dr Accounts Receivable $2,520

Cr Bank Charges $76

Cr Sales Revenue $2,444

Explanation:

Preparation of the Journal Entries

Jan. 1

Dr Cash $55,750

Dr Supplies $7,800

Cr Common Stock $63,550

($55,750+$7,800)

(To record the amount invested into the business along with supplies)

Jan. 2

Dr Purchases $11,850

Cr Cash $11,850

(To record the purchase of merchandise inventory by cash)

Jan. 3

Dr Accounts Receivable - Rivera Corporation, $ $1,010

Cr Sales Revenue $1,010

(To record the sale of merchandise on account)

Jan. 4

Dr Purchases $2,420

Cr Accounts Payable - Tsang Company $2,420

(To record the purchase of merchandise inventory on account)

Jan. 5

Dr Freight Expenses $220

Cr Cash $220

(To record the payment of freight charges)

Jan. 10

Dr Sales Returns and Allowances $220

Cr Accounts Receivable - Rivera Corporation $220

(To record the return of merchandise that was sold to Chu Corporation)

Jan. 11

Dr Cash $790

Cr Accounts Receivable - Chu Corporation ($1,010 - $220) $790

(To record the collection of amount from credit sales)

Jan. 13

Dr Accounts Payable - Tsang Company $2,420

Cr Cash $2,420

(To record the payment made to credit purchases)

Jan. 15

Dr Cash $7,620

Cr Sales Revenue $7,620

(To record the cash sales)

Jan. 15

Dr Accounts Receivable $1,315

Cr Bank Charges ($1,315*3/100) $39

Cr Sales Revenue $1,276

($1,315-$39)

(To record the sales made on credit card)

Jan. 16

Dr Equipment $1,915

Cr Cash $1,915

(To record the purchase of equipment on account)

Jan. 17

Dr Equipment $230

Cr Cash $230

(To record the payment of freight charges)

Jan. 18

Dr Purchases $6,300

Cr Accounts Payable - Terri Manufacturing $6,300

(To record the purchase of merchanise inventory on account)

Jan. 20

Dr Accounts Receivable - Moloney Corp. $3,380

Cr Sales Revenue $3,380

(To record the sales made on account)

Jan. 21

Dr Purchases $2,480

Dr Freight Expenses $150

Cr Accounts Payable - Johnson Company $2,630

($2,480+$150)

(To record the purchase of inventory on account)

Jan. 27

Dr Accounts Payable - Terri Manufacturing $6,300

Cr Cash $6,300

(To record the payment made to credit purchases)

Jan. 29

Dr Cash $3,380

Accounts Receivable - Moloney $3,380

(To record the amount received from credit sales)

Jan. 30

Dr Accounts Payable - Johnson Company $2,630

($2,480+$150)

Cr Cash $2,630

(To record the payment made to credit purchases)

Jan. 31

Dr Cash $8,225

Sales Revenue $8,225

(To record the cash sales)

Jan. 31

Dr Accounts Receivable $2,520

Cr Bank Charges ($2,520*3/100) $76

Cr Sales Revenue $2,444

($2,520-$76)

(To record the sales made on credit card)

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3 years ago
Which of the following is an example of a franchise
boyakko [2]

Answer:

Sonic Fandom

Explanation:

4 0
2 years ago
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