Kaizer plastics produces variety of plastic items

Assignment Help Operation Management
Reference no: EM132211190

Kaizer Plastics produces a variety of plastic items for packaging and distribution. One item, container #145, has had a low contribution to profits. Last year, 23,500 units of container #145 were produced and sold. The selling price of the container was $29 per unit, with a variable cost of $18 per unit and a fixed cost of $70,000 per year. The company is currently considering ways to improve profitability. Management believes that it can reduce their variable cost to 90 percent of their current value. Assuming all other costs equal, by how much would profits increase?

Reference no: EM132211190

Questions Cloud

Calculate the total resistance assuming the resistors are : Write a program that queries the user for two resistor values and then calculates the total resistance assuming the resistors are in series.
Related and unrelated diversification strategies : What are the key differences between related and unrelated diversification strategies?
Complete client individual tax return for the given year : Jenny Clark is a flight attendant employed by Virgin Australia. She is single and owns an apartment in Sandy Bay, which she purchased in 2003.
Cyber crime and terrorism : How is BLUE OCEAN STRATEGY different from the conventional competitive strategy. Cyber Crime and Terrorism.
Kaizer plastics produces variety of plastic items : Kaizer Plastics produces a variety of plastic items for packaging and distribution.
Description of beauty supply distribution company : Needing a good description of a beauty supply distribution company.
Find a minimum spanning tree for each component : Find a minimum spanning tree for each component and print the minimum spanning forest in adjacency matrix representation.
Characterizes the productivity measurement process : Which of the following statements best characterizes the productivity measurement process?
How well they segment their market : Visit three web services of fast moving consumer goods (FCMG) companies (for example Unilever and P&G). Is there evidence of a segmented approach.

Reviews

Write a Review

Operation Management Questions & Answers

  Make sure he understands the symptoms of the problem

Determine what the underlying issues are. Make sure he understands the symptoms of the problem.

  Seamlessly integrated into organization

Explain how new additional services can be seamlessly integrated into an organization.

  Between orders in days when optimal quantity is ordered

Pet Food Inc.: A local retailer of pet food faces demand for one of its items at a constant rate of 30,000 bags per year. It costs them $10 to process an order and $1 per bag per year to carry the item in stock. The stock is received four working day..

  What is the goal of informational organizational change

What role does diversity plan in the change process? How big of a role does fear actually play in organizational change? Can effective communication help to alleviate employees fear? What is the goal of informational organizational change?

  What evidence would he have to provide to support his claim

A male scored three points higher than a female on a selection test. The female was hired. The male filed a reverse discrimination case on the basis of unfair use of test scores for selection. What evidence would he have to provide to support his cla..

  What would be the economic order quantity

Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. Given the above information, what would be the economic order quantity (EOQ)? Given the EOQ, what would be the aver..

  Four distance measures most people use in communicating

Here are the four distance measures most people use in communicating. But in general, here's what we tend to expect in communication:

  Compute labor productivity under each system

Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 2 decimal places.)

  Human resources plays integral role in strategic management

Human Resources plays an integral role in the strategic management of health care today. What are your thoughts on this statement? What are four different methods by which an importer can make a payment to an exporter? List them in increasing order o..

  Multifactor productivity ratio for the diagnostic department

The diagnostic department at Saints Memorial Hospital provides medical tests and evaluations for patients, ranging from analyzing blood samples to performing magnetic resonance imaging (MRI). Average cost to patients is $60 per patient. What is the m..

  What was its capacity utilization rate last month

Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers.

  Product-based factor is high or low

All of these questions are according to the company I have pick which is Metlife. Relative Advantage: High or low. State reasons why you think this product-based factor is high or low. It is possible that some reasons increase the relative advantage,..

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