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

Dqwhat are some of the primary barriers to the effective

DQ What are some of the primary barriers to the effective implementation of strategies in health care organizations? How can each be overcome or removed? Share an example from an institution you are familiar with or lear ...

This is a message board questioncity police department

This is a message board question City Police Department instituted a health risk assessment program because it was concerned that all of its employees be physically fit and because its health insurance company indicated ...

1 what can a marketing mix include for a b2c e-commerce

1. What can a marketing mix include for a B2C e-commerce business? 2. What are the major types of B2C e-commerce payment systems? 3. How does a reverse auction work?

Discuss the differences between the agency theory and the

Discuss the differences between the "agency theory" and the "stewardship theory". Explain which of these theories applies to your strategic audit firm and why? Explain the strategic roles Board of Directors have in conju ...

Can someone please help me with this questions identify two

Can someone please help me with this questions. Identify two possible talent pivot points for Bank of America and propose ways to make changes in staffing and how to communicate these changes to stakeholders.

Leadership and leadership developmentyou are to write a

Leadership and Leadership Development You are to write a three to four page paper that answers the following: 1. Discuss the keys to effectively managing leadership development at each of the following levels: a first-li ...

Evaluationthe finance department of a large corporation has

Evaluation The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the NPV indicated rejection, ...

The tata steel casediscussion shared practice analysis of

The Tata Steel Case Discussion: Shared Practice: Analysis of Strategic Alliances or Value Opportunities Do you regularly make time in your busy schedule to read and evaluate the current research in your professional fiel ...

3 page paper answer all questionsweve all had experiences

3 page paper ****answer all questions We've all had experiences where we have been frustrated by a decision that our supervisor made. You have probably blamed this decision on your boss being "closed-minded," "stubborn," ...

Total demand for daily perishable item is a random variable

Total demand for daily perishable item is a random variable with a distribution estimated below. Each item costs 0.60 in materials and labor and then sold for 2.50 each. All unsold items are donated for a 0.20 credit eac ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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