Calculate the optimum profit, Corporate Finance

Assignment Help:

XYZ plc has a Visitor Centre based in Perth.  The Centre houses exhibitions and educational resources to be used by schools, colleges and visitors.  It is a popular facility due to its innovative interactive displays and the care XYZ plc has taken to link the centre's resources to the school and college curriculum.

The Centre also hosts short courses in four main areas:

  • History of the textile industry in Scotland
  • Sociology and the textile industry
  • Economic and Financial Management within the textile industry
  • Traditional and modern spinning methods

Each of these courses runs over a number of sessions which take a different amount of time and incur different expenses.  The session prices reflect these differences.

The Visitor Centre currently has eight staff who work different hours and are qualified to deliver different courses.  The following table shows the hours each member of staff works and the courses they are qualified to provide.

Employee

Hours per week

History

Sociology

Management

Spinning

1

40

2

40

3

40

4

20

 

5

20

 

6

20

 

 

7

10

 

 

 

8

10

 

 

 

You have also been provided with the following information for the last quarter (12 weeks):

 

History

Sociology

Management

Spinning

Estimated session demand

400

300

800

300

Time per session

1 hour

1.5 hours

2 hours

3.5 hours

Price per session (£)

10

15

30

52.50

Variable cost per hour (£):

 

 

 

 

Materials

1.00

1.50

2.50

3.00

Expenses

1.00

1.50

1.00

1.50

Wages

5.00

5.00

6.50

6.50

Fixed overheads for the last quarter (12 weeks) totalled £3,000.

Required

a) Given the current staff restrictions, calculate the optimum course mix and optimum profit for the quarter.

b) Assuming that all eight staff was qualified to provide all four courses, calculate the optimum course mix and profit for the quarter.

c) Describe the importance of qualitative factors in the decision making process.


Related Discussions:- Calculate the optimum profit

MBA, how the knowledge of corporate finance helps thea multinational compan...

how the knowledge of corporate finance helps thea multinational company to take decision about mergers and acquisition

Priori forecasting, Chang and Fyffe (1971) assume that a ?rm has a ''long-r...

Chang and Fyffe (1971) assume that a ?rm has a ''long-run sales history of individual seasonal-style-goods SKUs or groups of such SKUs''. They propose to estimate demand by using r

Competitive and efficient., Assume that there are two firms, firm A and fir...

Assume that there are two firms, firm A and firm B. The firms have identical present values at £10,000 and an identical future value profile as given in the picture below. The prob

Corporate Finance Graded Project, I need the El Cap climbing company corpor...

I need the El Cap climbing company corporate finance graded project

Bond valuation, An investor buys a French government, 10-year bond, paying ...

An investor buys a French government, 10-year bond, paying annual coupon of 4.5%. Face value = 1000. The investor is unsure of his investment horizon and considers 5 horizons: 5, 6

Net present value of project, Net present value of this project: ...

Net present value of this project: The following I/S is based on the information associated with a new project. Answer the questions. Projected Income Statem

Interest Rates and Bond Valuation, Bond J is a 4 percent coupon bond. Bond ...

Bond J is a 4 percent coupon bond. Bond K is a 12 percent coupon bond. Both bonds have 8 years to maturity, make semiannual payments and have a YTM of 7 percent....what are the mon

Renowned Cola, corporate finance, Financial Accounting Calculate the market...

corporate finance, Financial Accounting Calculate the market value of Renowned Cola''''s debt at year-end 2005. What is the book value of debt? Why do usually use market or book va

Write Your Message!

Captcha
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