Determine the total cost of the special order

Assignment Help Operation Management
Reference no: EM131465770

Sharman Athletic Gear Inc. (SAG) is considering a special order for 15,000 baseball caps with the logo of East Texas University (ETU) to be purchased by the ETU alumni association. The ETU alumni association is planning to use the caps as gifts and to sell some of the caps at alumni events in celebration of the university’s recent national championship by its baseball team. Sharman’s cost per hat is $3.50, which includes $1.50 fixed cost related to plant capacity and equipment. ETU has made a firm offer of $35,000 for the hats, and Sharman, considering the price to be far below production costs, decides to decline the offer.

a. Determine the total cost of the special order.

Total cost of the special order

b. In terms of maximizing short-term operating profit, did Sharman make the wrong decision in declining the offer from ETU?

Reference no: EM131465770

Questions Cloud

Identify ways through which feedforward and feedback control : Using organization with which you are familiar, identify ways through which feedforward and feedback controls can be used to assure high quality final outcome
Discuss about the data management research paper : Discuss about the Data Management Research Paper.Explain the Database Management System.
What is the average mean score in the class : What is the average (mean) score in the class? What is the median score? Compute the standard deviation of the data using equation 10.4 and a calculator.
Foundation in ethics if you are involved in health care : Do you think that you should have a foundation in ethics if you are involved in health care?
Determine the total cost of the special order : Determine the total cost of the special order. In terms of maximizing short-term operating profit,
Globalization of soccer : Entitled Globalization of Soccer
Assembly line pulls containers of parts : An assembly line pulls containers of parts from machining centers at a rate of 600 per day. Each container holds 20 parts and typically waits 2 hours at a machi
Examine how a business picks its location : The assignment is to use the Factor Rating Model to determine which is the best of 3 potential locations for the next Hard Rock Café
What are the three main challenges for wild water : What are the three main challenges for Wild Water? For each identified challenge, identify if it is internal or externally environmentally focused?

Reviews

Write a Review

Operation Management Questions & Answers

  Basic relationships-two tsa personnel to inspect passengers

A small airport has two TSA personnel to inspect passengers on their way to board their flights. Passengers arrive at a rate of about 21 an hour. Each TSA inspector can process about  14 passengers per hour. How long (in minutes) would the waiting ti..

  Discuss the key facts and critical issues presented

In a narrative format, discuss the key facts and critical issues presented in the Red Cross case. What are the reasons for the ARC's ethical dilemmas, and how can the organization guarantee that these problems will not recur in the future?

  Computer-generated imagery model for development

Determine whether certain contract remedies exist in the following scenario: Forrest Gump is a famous table tennis player. He enters into a contract with Alabama Sports Marketing to advertise the latest ping pong game and to serve as the computer-gen..

  Maximizing price of companys stock-maximizing market share

The economic theory of the firm assumes that the principle objective of a firm is to maximize profits. However, there are other goals that a firm may pursue such as maximizing return on investment, maximizing price of company's stock, maximizing mark..

  What is the role of corporate governance

The General Manufactures widget manufacturing plant operating in Pleasantville (in a midWestern state) is at a crossroads. Profits have been dwindling over the past several years, and management feels that high labor costs are making their operation ..

  Providing practical interpretation of the solution

The customer services department of a large retailer receives at least approximately 1200 emails from customers per day, all of which have to be replied to that day. The department employs two grades of staff: junior and senior. calculating exact val..

  True of customer-focused organizations

Which of the following is most likely to be true of customer-focused organizations? What tasks are allocated to the purchasing function? What are the legal issues associated with the purchasing function? Real World Inventory Models: Which strategy wo..

  In the now famous linda problem

In the now famous "Linda Problem", one finds what that is suggested?

  Determine the average number of customers waiting at each

steinmart has seven cashier stations placed strategically around their store so that each of them serves a seventh of

  A motor grader requires two passes at 2 miles per hour

A motor grader requires two passes at 2 miles per hour, two passes at 3 miles per hour, and one pass at 4 miles per hour to accomplish the work

  Cash instead of the reasonable notice period

Explain the common law requirement for an employer to provide an employee with reasonable notice of termination or cash instead of the reasonable notice period. Your explanation must review the following areas:-is it the usual practice to provide rea..

  What are the utilization and efficiency of the system

There was ample demand for business courses last semester, conflicting schedules allowed only 1,450 new students to take business courses. What are the utilization and efficiency of this system?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd