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

Assignment lasa- business unit analysisdirections create a

Assignment: LASA- Business Unit Analysis Directions: Create a Feasibility Study for Harley-Davidson using the following outline: Part I: Differentiation Strategies The analysis of current strategy and competitor analysis ...

What kinds of resources are allocated towards the

What kinds of resources are allocated towards the monitoring of phenomena's like earthquakes, tsunami, and hurricanes?

Imagine your manager has requested that everyone in the

Imagine your manager has requested that everyone in the company take the StrengthsFinder test. Now, your manager has asked you to put together a training tool on how to best coach and develop employees in the decision ma ...

What are the basic social obligation of a business

What are the basic social obligation of a business organization? Does this conflict wth the profit objectives of the business? What is social audit ? Analyse the mission and objectives of an organisation, evaluate and wr ...

A quantitative analysisproblem 1 demand analysis 6

A: Quantitative Analysis Problem # 1: "Demand Analysis" (6 points) Refer to Figures 5-5 and 5-6 on page 125 (Hellman Textbook). Assume that insurance and valuable property are complementary goods and the insurance premiu ...

- each student will submit a written critical reflexive

- Each student will submit a written critical reflexive report (3,000 words) on a qualitative interview that they have undertaken. - This will include the following activities: designing research questions, an interview ...

Review the following articlesarticle 1article 2article

Review the following articles: Article 1 Article 2 Article 3 Based on the religious discrimination lawsuits outlined in the articles, imagine that you work for a retail store, and you were asked to develop training for e ...

Entrepreneurship sports industry conceptual essaya

Entrepreneurship (Sports Industry) Conceptual Essay A. Critically analyse the significance of meaning to entrepreneurship in the sports industry. Task Description Students will write an essay that explores a concept cent ...

Multiplant monopoly consider a monopoly that faces the

(Multiplant Monopoly) Consider a monopoly that faces the demand curve P=120-3Q, where Q =q1+ q2 is the total output from the two plants operated by the firm. The two plants are characterized by the total cost functions T ...

1 many personal care products bring to the purchaser

1. Many personal care products bring to the purchaser feelings of self-enhancement and security in addition to the essential benefits they offer. This is an illustration of A. An extended product B. A generic product C. ...

  • 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