Explore the profitability revenue

Assignment Help Operation Research
Reference no: EM13710764

Explore the Profitability Revenue and Cost Analysis

Problem- A company owns three motels in a ski resort area. Although there is some business during the summer months, the company finds it very difficult to staff all three operations during this period and is contemplating closing one of the three motels. The sales revenue and the breakdown of costs during this period are listed below in Table 1.Assuming that one of the motels must be closed and that its closing will have no effect on the sales revenue of the other two, explain which motel should be closed and why?

TABLE 1 Sales Revenue Variable Costs Fixed Cost

Motel A $265,000 160,000 110,000

Motel B $325,000 150,000 167,000

Motel C $425,000 135,000 260,000

Would you answer be the same if the sales revenue remained the same but the variable and fixed costs changed? (This is demonstrated in Table 2 below)

TABLE 2 Sales Revenue Variable Costs Fixed Cost

Motel A 265,000 100,000 110,000

Motel B 325,000 165,000 113,000

Motel C 425,000 250,000 112,000

I need help to determining which business unit will remain open based on sales revenue, variable cost and flexible cost. In the first analysis, a decision is made to keep a business unit open based on the revenue and cost analysis. In the second analysis, the sales revenue remains constant but the variable and flexible costs changing.

Reference no: EM13710764

Questions Cloud

Review of effectiveness of its product launch : Identify a close competitor to the new product. Your review needs to be undertaken from the perspective of the company introducing the new product and the company producing the 'old' product.
What is the concentration of s2o3^2- in a solution : What is the concentration of S2O3^2-(aq) in a solution prepared by mixing 10.00 mL of .0050 M Na2S203 (aq) with enough .200 M KCl (aq) to make 50.0 mL of solution
Describe workplace cultures and experiences : Consider you own experience with workplace culture. Describe past and current experiences with organizational culture. Be as specific as possible and support your comments with examples.
Explain how much of the concentrated stock solution : Problem- Nitric acid is usually purchased in concentrated form with a 70.3% HNO3 concentration by mass and a density of 1.41 g/mL. How much of the concentrated stock solution in milliliters should you use to make 2.5L of 0.300M HNO3
Explore the profitability revenue : which business unit will remain open based on sales revenue, variable cost and flexible cost. In the first analysis, a decision is made to keep a business unit open based on the revenue and cost analysis.
Explain the largest second ionization energy : Problem- Rank the following atoms based on which would have the largest second ionization energy from smallest 2nd IE to largest 2 nd IE
Explain the competitive decision : Create a formal set of competitive decision-making criteria in order to analyze strategic options and determine which business opportunity should be included in your strategy recommendation.
Explain what was the molality of compound b in the solution : A graph of temperature-time readings showed a plateau (flat) region [a S(1)/S(s)] slush at 6.65 degree C. A solution of 2.74 g compound b was dissolved in 15.5 ml of S. The solution was uniformly cooled and dropped in temperature until reaching 4...
What volume of the diluted solution contains nacl : Problem- A 150 mL sample of an 9.5M NaCl solution is diluted to 3.0L What volume of the diluted solution contains 13.8g of NaCl

Reviews

Write a Review

Operation Research Questions & Answers

  State role of theory in qualitative approaches

Compare and contrast the role of theory in the five main qualitative approaches. State what you believe, at this time, will be the role of theory in your qualitative research plan and explain any considerations that you must keep in mind regarding ..

  Simulate brennan aircrafts problem

Simulate Brennan Aircraft's problem and determine the best policy. Should the firm replace one pen or all four pens on a plotter each time a failure occurs and develop a second approach to solving this problem, this time without simulation. Compar..

  A research methodology to use for topic (mixed method)

Your group project you selected a research topic (the effects of childhood bullying) and a research methodology to use for that topic (mixed method)

  Explain the competitive decision

Create a formal set of competitive decision-making criteria in order to analyze strategic options and determine which business opportunity should be included in your strategy recommendation.

  Explanation about travelling salesman problem

Explain how the Travelling Salesman problem is equivalent to a Permutational Flow Shop problem. Notify me the travelling salesman problem and define permutational flow problem.

  Description about stakeholder analysis - microsoft

Stakeholders, if properly handled, can be a real asset to any organization. are the factors the organization needs to consider in dealing with the differing levels of stakeholders.

  Which strategy would be appropriate for fitness plus

Which capacity strategy would be appropriate for Fitness Plus? Justify your answer. Explain how would you link the capacity decision being made by Fitness Plus to other types of operating decisions?

  Determine the measures of central tendency

Determine the Measures of central tendency:  mean, median, and mode and measures of dispersion:  range, top 20th percentile, and standard deviation

  Prepare a report describing explain how cafeteria plan work

prepare a report describing explain how a cafeteria plan works, along with some of the advantages/disadvantages to both the employer and employee.

  Healthy nutritional standard for the horses

A boarding stable feeds and houses work horses used to pull tourist-filled carriages through the streets of a historic city. The stable owner wishes to strike a balance between a healthy nutritional standard for the horses and the daily cost of fe..

  Detailed issues in ethics for qualitative research

What are some specific issues of ethics that are more pertinent to qualitative research studies than to quantitative ones.

  Wite a two part paper in the first part outline your own

write a two part paper. in the first part outline your own personal code of ethics by following the instructions

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