Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Sunshine State Fruit Company sells premium quality oranges and other citrus fruits by mail order. Protecting fruit during shipping is significant, so comapany has developed and makes shipping boxes. Annual cost to make 80,000 boxes is:

Materials $120,000
Labor 20,000
Indirect manufacturings costs:
variable 16,000
fixed 60000
total 216,000

Hence, the cost per box averages $2.70
Assume Weyerhaeuser submits bid to supply Sunshine State with boxes for $2.40 per box. Sunshine State should give Weyerhaeuser box design specifications, and boxes will be made according to those specs.

1. How much, if any, would Sunshine State save by purchasing boxes from Weyerhaeuser?

2. What subjective factors must affect Sunshine State's decision whether to make or purchase boxes?

3. Assume all fixed cost represent depreciation on equipment which was bought for $600,000 and is just about at the end of its ten-year life. New replacement equipment will cost $1 million and is also expected to last ten years. In this case, how much, if any, would Sunshine State save by purchasing boxes from Wyerhaeuser?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M931499

Have any Question? 


Related Questions in Business Management

Compare and contrast the mission andor organizational

Compare and contrast the mission and/or organizational visions statements of the two companies. What are the similarities and differences? How do you think these statements impact the culture of each organization? What s ...

For dhl identify and discuss what you believe to be the

For DHL, Identify and discuss what you believe to be the most strategic external environment scanning factor that could have the biggest impact on your Strategic Audit firm in the next five years. Explain what you think ...

Working with organizations to improve the interactions of

Working with organizations to improve the interactions of members and increase productivity through collaborative behavior is an essential role of the organization development human resources specialist. You will need to ...

You can observe important lessons about your

You can observe important lessons about your decision/negotiating process by look at a memorable or "turning point" event in which you recall a decision and how it was negotiated, or not. In what ways was that decision e ...

Question 1 what is market segmentation being a marketing

Question 1. What is market segmentation? Being a marketing manager, what kind of different bases you will chose for the market segmentation? Question 2. If a company wants to launch a new product in its product portfolio ...

A term paper with a topic of the role of information

A term Paper with a topic of the role of information technology in enhancing workplace fields in healthcare assigned to the following subjects: 1. Healthcare teams and team members. 2. Working in healthcare teams. 3. Eva ...

Q1 what role do retailers and wholesalers play in a

Q1. What role do retailers and wholesalers play in a marketing channel?What impact does retailing have on the Saudi economy? Explain. Q2. What do you mean by Personal Selling? How do companies plan, implement, and contro ...

This is a discussionnbspi need a 200 word response to this

This is a Discussion. I need a 200 word response to this statement with one in-texted citation in APA format. "I believe that anyone working for any company should be able to exercise their first amendment rights, but it ...

In contrast readnbspthis blog post according to the post

In contrast, read  this blog post ; according to the post, why might anti-gouging laws not increase social welfare, or at least why might they lead to consequences which are unintended by the government?

Do you agree that time is an important situational factor

Do you agree that time is an important situational factor to consider in selecting a leadership style for a situation?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen