What revenue would the company expect from imposing the fee

Assignment Help Operation Management

Reference no: EM131278372

A manufacturing company doesn't charge its customers for shipping. It's products are small and lightweight, so there isn't much difference between the cost to ship small orders and large orders. Shipment costs average $84 per.

The company has a challenge to reduce its costs. One idea they are considering is charging customers for small orders. They did a survey asking customers what they would do if the company imposed a $90 fee on orders <$500. Of the 172 customers surveyed, 51 indicated they would pay the fee. The others said they would consolidate their orders.

Last quarter, the company processed 65,104 shipments. Using last quarter's shipping volume and the survey, what revenue would the company expect from imposing the fee?

Reference no: EM131278372

Questions Cloud

Design and implement dynamic web pages using javascript : Web Application Development-COMP- Read the scenario, understand and design a portfolio and Create dynamic user-interface elements, including simple rollovers and complex navigation bars.

Determine the head loss associated with the flow of the oil : Determine the head loss associated with the flow of the oil through the channel. Neglect gravity and any friction force between the piston and cylinder walls.

Technique requires the use of dummy activities : When a project is somewhat similar to an old project, it is a good idea to use the exact same plan(project?) over again. The scope statement specifies the main areas of work to be performed, and the intended deliverables for n times. The advantages o..

Discuss significance of the case in us trademark law : In a minimum of 500 words, explain the reasons why this decision was made, and discuss the significance of this case in U.S. trademark law jurisprudence.

What revenue would the company expect from imposing the fee : A manufacturing company doesn't charge its customers for shipping. It's products are small and lightweight, so there isn't much difference between the cost to ship small orders and large orders. Shipment costs average $84 per. Last quarter, the compa..

Is indonesian rupiah appreciating in real terms : Suppose the dollar/rupiah rate is fixed, but Indonesian prices are rising faster than U.S. prices. Is the Indonesian rupiah appreciating or depreciating in real terms?

How could losses in the exhaust system be reduced : How could losses in the exhaust system be reduced? What primarily limits the minimization of exhaust system losses?

Any idle operator can take next machine that needs servicing : The Dolomite Corporation is making plans for a new factory. One department has been allocated 12 semiautomatic machines. A small number (yet to be determined) of operators will be hired to provide the machines the needed occasional servicing. Pool th..

Difference between negligence and intentional tort : Discuss the difference between negligence and intentional tort. Is it possible for an action to move from a negligent action to an intentional tort? Include examples of intentional torts in real world.

User Account

All Pages