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

Why is it important to have standards or guidelines for

Why is it important to have standards or guidelines for performing project management functions?

Write a one to three 1-3 page executive summary for your

Write a one to three (1-3) page executive summary for your business plan, in which you justify: a. A clear and concise business concept. b. A thoroughly planned business concept. c. A capable management structure. d. A c ...

Write a 1050 word paper in which you research two companies

Write a 1,050 word paper in which you research two companies and do the following: Evaluate the internal and external environments of each company using an environmental scan. Analyze the competitive advantage of each co ...

Activity instructionsfor this assignment you will be using

Activity Instructions For this assignment, you will be using the instructions and data found in your textbook at the end of Chapter 15, "Data Preparation and Description," in  Question 3 , which describes an inventory ch ...

Sppose that the goods market is given byc c0 c1 y-ti b0

Suppose that the goods market is given by: C= c0 + c1 (Y-T) I = b0 + b1Y -b2i with 0 Financial market is given by:  M/P = Y (.25 - i)  a). Derive an equation for equilibrium i in the goods market. Write in words how the ...

As the chart completion supervisor for an acute care

As the Chart Completion Supervisor for an acute care hospital, you are to meet with the HIM Director to discuss the documentation requirements for the Operative Report. First, select either The Joint Commission, the CMS ...

What trade sales promotion tools does he use why does he

What trade sales promotion tools does he use? Why does he use sales promotion tools when he is selling direct to consumers? Explain how Popeil's selling tactics allow him to achieve the desired objectives of sales promot ...

As you arrive to your next scheduled meeting you meet rae

As you arrive to your next scheduled meeting, you meet Rae Marie, VP of Operations for MyShoppingSpreeTV, who, arrives with an unusually positive outlook about her current situation. When you inquire about her new perspe ...

Todays complex organizations often require the smooth

Today's complex organizations often require the smooth, integrated functioning of teams across several functional areas. Leading of a team of diverse individuals is quite a challenge. Encouraging the effective collaborat ...

Create a wbs for the following projects updating 50 laptops

Create a WBS for the following projects: Updating 50 laptops from Project 2007 to Project 2010 Decide on all of the Level 2 categories for the WBS. Use MS Project as the software to create a WBS in chart form and as task ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate