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Constructing A Downtown Parking Lot in Draper

1) Constructing a downtown parking lot in Draper would break even with 53846 parking transactions per year at $3.20 per transaction. 2) The Clean Clothes Corner laundry would break even at 2000 items per month with a service price of $1.10 and variable cost of $0.25 per item. 3) The Ocobee River Rafting Company could break even with 375 rafting trips at $20 per trip and $12 variable cost per trip, or 833 trips at $12 variable cost.

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0% found this document useful (0 votes)
278 views7 pages

Constructing A Downtown Parking Lot in Draper

1) Constructing a downtown parking lot in Draper would break even with 53846 parking transactions per year at $3.20 per transaction. 2) The Clean Clothes Corner laundry would break even at 2000 items per month with a service price of $1.10 and variable cost of $0.25 per item. 3) The Ocobee River Rafting Company could break even with 375 rafting trips at $20 per trip and $12 variable cost per trip, or 833 trips at $12 variable cost.

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Water Melon
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We take content rights seriously. If you suspect this is your content, claim it here.
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Constructing a Downtown Parking Lot in Draper

Service Price $ 3.20 Annual payment for Capital


Unit 1.00
Revenue $ 3.20
Fix Cost $ 140,000.00
Variable Cost $ 0.60
Profit $ -139,997.40

A
Breakeven FOR EVERY YR(Annual basis)
Service Price $ 3.20 Service Price
Unit 53846.15 Unit
Revenue $ 172,307.69 Revenue
Fix Cost $ 140,000.00 Fix Cost
Variable Cost $ 32,307.69 Variable Cost
Profit $ 0.00 Profit

The Clean Clothes Corner Laundry


Fixed Cost per month $ 1,700.00 Cost Of machine
Cost of machine $ 16,200.00 divide: 3yrs(in month)
Variable Cost per item $ 0.25 Additional Fixed cost per month
Service price per unit $ 1.10 Fixed Cost per month
Total Monthly Fixed Cost

A
Fixed Cost $ 1,700.00
Divide:
Service price $ 1.10
Variable Cost $ 0.25 $ 0.85
Volume (items per month) 2000

The Ocobee River Rafting Company


Fixed cost $ 3,000.00 Fixed Cost (9000+1000)
Variable cost $ 12.00 Variable Cost
Selling Price $ 20.00 Selling Price

First Alternative

Fixed Cost $ 3,000.00


Divide:
Service price $ 20.00
Variable cost $ 12.00 $ 8.00
Volume 375
Second Alternative

Fixed Cost $ 10,000.00


Divide:
Service price $ 20.00
Variable cost $ 8.00 $ 12.00
Volume 833

34 Given:
Flour 20cups
Time 3hrs(180mins)

Option Cake Loaf Bread Flour used


1 0 2 16
2 1 2 19
3 3 1 17
4 4 0 12

Using logical solution, there are 4 possible solution to get the most remaining flour at the given time wi

35
Registered Staff 1 2 3
Waiting time (mins) 20 14 9
Service Cost $ 60.00 $ 120.00 $ 180.00
Waiting Cost $ 850.00 $ 550.00 $ 300.00
Total Cost $ 910.00 $ 670.00 $ 480.00

Lowest Cost $ 290.00

The minumum cost of 290 occurs with 4 registered staff

36
$ 399,723.45

B
RY YR(Annual basis) Annual unit parked per year 207585.94
$ 3.20 Days per year 365
207585.94 Unit parked per day 569
$ 664,275.02
$ 140,000.00 Using "What-If Analysis(goals)"
$ 124,551.57
$ 399,723.45

$ 16,200.00
36
$ 450.00
$ 1,700.00
$ 2,150.00

B
Fixed Cost $ 2,150.00
Divide: $ 1.10
$ 0.25 $ 0.85
Volume (items per month- including new machine) $ 2,529.41
Volume (items per month- excluding new machine) 2000
Additional Items per month $ 529.41

$ 10,000.00
$ 8.00
$ 20.00
Time used (in mins) Total Sales
$ 60.00 $ 12.00
$ 105.00 $ 22.00
$ 165.00 $ 36.00
180 $ 40.00

remaining flour at the given time with a highest posible sales and the 4th option is the best answer

4 5 6 7
4 2 1 1
$ 240.00 $ 300.00 $ 360.00 $ 420.00
$ 50.00 $ - $ - $ -
$ 290.00 $ 300.00 $ 360.00 $ 420.00
C D
Volume(per month) $ 4,300.00 Service Price $ 0.99
Service Price $ 1.10 $ 4,730.00 Volume $ 3,800.00
Less: Revenue $ 3,762.00
Volume(per month) $ 4,300.00 Fixed Cost $ 1,700.00
Variable Cost $ 0.25 $ 1,075.00 Variable Cost $ 950.00
Fixed Cost $ 2,150.00 Profit $ 1,112.00
Monthly profit $ 1,505.00
Additional Fixed cost per month $ 450.00
Monthly profit after 3yrs $ 1,955.00
8
0
$ 480.00
$ -
$ 480.00
E
Service Price $ 0.99
Volume $ 4,700.00
Revenue $ 4,653.00
Fixed Cost $ 2,150.00
Variable Cost $ 1,175.00
Profit $ 1,328.00

Buy the new equipment


but not reduce the
service price

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