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Chapter 14 Problem Data

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Chapter 14 Problem Data

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Martinez Model Cars

X1 X2 X3 X4
Minutes/Unit Ferrari BMW Lotus Tesla Minutes Available
Mold 5.00 3.50 1.00 3.00 600
Sand 4.00 3.20 2.00 3.65 600
Polish 3.50 2.00 3.00 1.00 480
Paint 3.75 3.25 1.75 2.00 480
Finsih 4.00 1.00 2.00 3.00 480
Price $350.00 $330.00 $270.00 $255.00
International Chef

Indian Chinese California Net profit


Premium 0.4 0.2 0.4 $0.50
Duke Grey 0.3 0.5 0.2 $0.30
Breakfast 0.4 0.4 0.2 $0.20

Amount available 20,000 22,000 16,000


Young Energy

Type of coal BTU/lb % Ash % Moisture Cost/lb


A 11,500 13% 10% $2.49
B 11,800 10% 8% $3.04
C 12,200 12% 8% $2.99
D 12,100 12% 8% $2.61

Requirements at least at most at most


11,900 12.20% 9.40%
Holcomb Candles

Large jar Small jar Large pillar Small pillar Votive pack
Wax 0.5 0.25 0.5 0.25 0.3125
Fragrance 0.24 0.12 0.24 0.12 0.15
Wick 0.43 0.22 0.58 0.33 0.8
Display feet 0.48 0.24 0.23 0.23 0.26
Profit/unit $0.25 $0.20 $0.24 $0.21 $0.16
Children's Theater

Show Revenue Cost Minimum Number of Performances


1 $2,217 $968 32
2 $2,330 $1,568 13
3 $1,993 $755 23
4 $3,364 $1,148 34
5 $2,868 $1,180 35
6 $3,851 $1,541 16
7 $1,836 $1,359 21
Jacee's Department Stores
Risk as a %
Department Investment/sf of $ invested minimum sf maximum sf expected profit/sf
Electronics $100.00 24% 6,000 30,000 $12.00
Furniture $50.00 12% 10,000 30,000 $6.00
Men's Clothing $30.00 5% 2,000 5,000 $2.00
Clothing $600.00 10% 3,000 40,000 $30.00
Jewelry $900.00 14% 1,000 1,000 $20.00
Books $50.00 2% 1,000 5,000 $1.00
Appliances $400.00 3% 12,000 40,000 $13.00
Dara's Investments

Fund Average return Expenses


1 Large cap blend 17.20% 0.93% (current holding)
2 Small cap growth 20.40% 0.56% (current holding)
3 Green fund 26.30% 0.70% (current holding)
4 Growth & income 15.60% 0.92% (current holding)
5 Multi-cap growth 19.80% 0.92%
6 Mid-cap index 22.10% 0.22%
7 Multi-cap core 27.90% 0.98%
8 Small cap international 35.00% 0.54%
9 Emerging international 36.10% 1.17%
10 Money market fund 4.75% 0.00%
11 Savings account 1.00% 0.00%
Janette Douglas Bake Sale

Ingredient Brownies Cupcakes Peanut Butter Cups Shortbread cookies Cost/unit


Butter (cups) 0.67 0.33 1 0.75 $1.44
Flour (cups) 1.5 1.5 1.25 2 $0.09
Sugar (cups) 1.75 1 2 0.25 $0.16
Vanilla (tsp) 2 0.5 0 0 $0.06
Eggs 3 2 1 0 $0.12
Walnuts (cups) 2 0 0 0 $0.31
Milk (cups) 0.5 1 2 0 $0.05
Chocolate (oz) 8 2.5 9 0 $0.10
Baking soda (tsp) 0 1 0 0 $0.07
Frosting (cups) 0.5 1.5 0 1 $2.74
Peanut butter (cups) 0 0 2.5 0 $2.04
Kelly Foods

Per Case Cost of Shipping


Chicago Cincinnati Indianapolis Pittsburgh
Ackron $1.70 $2.30 $2.50 $2.15
Evansville $1.95 $2.35 $1.65 $2.95

Weekly Capacity (cases)


Ackron 2,800
Evansville 4,500

Weekly Demand (cases)


Chicago 2,000
Cincinnati 1,200
Indianapolis 2,500
Pittsburgh 1,400
Liquid Gold, Inc.
Cost to Site
Plant Material S1 S2 S3 S4
P1 20,876 $105.00 $86.00 $23.00
P2 50,870 $86.00 $58.00 $41.00
P3 38,652 $93.00 $46.00 $65.00 $38.00
P4 28,951 $116.00 $27.00 $94.00
P5 87,423 $88.00 $56.00 $82.00 $89.00
P6 76,190 $111.00 $36.00 $72.00
P7 58,237 $169.00 $65.00 $48.00

Site Capacity
S1 285,922
S2 308,578
S3 111,955
S4 208,555
Shafer Office Supplies

Seattle San Francisco Las Vegas Tuscon Denver Charlotte Minneapolis


Atlanta $2.15 $2.10 $1.75 $1.50 $1.20 $0.65 $0.90
Lexington $1.95 $2.00 $1.70 $1.53 $1.10 $0.55 $0.60
Milwaukee $1.70 $1.85 $1.50 $1.41 $0.95 $0.40 $0.40
Salt Lake City $0.60 $0.55 $0.35 $0.60 $0.40 $0.95 $1.00
Demand 5,000 16,000 4,200 3,700 4,500 7,500 3,000
Fayetteville Birmingham Orlando Cleveland Philadelphia Supply
$0.80 $0.35 $0.15 $0.60 $0.50 40,000
$1.05 $0.60 $0.50 $0.25 $0.30 35,000
$0.95 $0.70 $0.70 $0.35 $0.40 15,000
$1.10 $1.35 $1.60 $1.60 $1.70 16,000
9,000 3,300 12,000 9,500 16,000
Roberto's Honey Farm

Selling prices (Chilean pesos)


.75 kg plastic 1 kg plastic .5 kg glass 1 kg glass bulk/kg
cream 744 880 760 990 616
filtered 635 744 678 840 521
pasteurized 696 821 711 930 575
mélange 669 787 683 890 551
strained 683 804 697 910 563

Minimum demand
.75 kg plastic 1 kg plastic .5 kg glass 1 kg glass
cream 300 250 350 200
filtered 250 240 300 180
pasteurized 230 230 350 300
mélange 350 300 250 350
strained 360 350 250 380

Maximum demand
.75 kg plastic 1 kg plastic .5 kg glass 1 kg glass
cream 550 350 470 310
filtered 400 380 440 300
pasteurized 360 390 490 400
mélange 530 410 390 430
strained 480 420 380 500

Package costs (Chilean pesos)


.75 kg plastic 1 kg plastic .5 kg glass 1 kg glass
91 112 276 351

Harvesting and production costs for each product per kilogram in pesos are
cream 322
filtered 255
pasteurized 305
mélange 272
strained 287
Sanford Tile Company

Grade I Grade II Grade III


Profit/square foot $2.50 $4.00 $5.00
Clay 50% 30% 25%
Silica 5% 15% 10%
Sand 20% 15% 15%
Feldspar 25% 40% 50%
Hansel Corporation

Grade 1 Grade 2 Grade 3 Grade 4 Availability


Additive A 0.40 0.37 0.34 0.90 100,000
Additive B 0.30 0.33 0.33 90,000
Additive C 0.20 0.25 0.33 40,000
Additive D 0.10 0.05 0.10 10,000
Profit/lb $2.00 $1.70 $1.50 $2.80
Mirza Manufacturing

Product Production Cost/unit Magnets Wire Casing


A $0.25 4 2 2
B $0.35 3 1 3
C $0.15 2 2 1
D $0.10 8 3 2

Min Demand
Product NA EU Asia
A 850 900 100
B 700 200 500
C 1,100 800 600
D 1,500 3,500 2,000

Max Demand
Product NA EU Asia
A 2,550 2,700 300
B 2,100 600 1,500
C 3,300 2,400 1,800
D 4,500 10,500 6,000

Packaging and Shipping Cost/Unit


Product NA EU Asia
A $0.20 $0.25 $0.35
B $0.18 $0.22 $0.30
C $0.18 $0.22 $0.30
D $0.17 $0.20 $0.25

Unit Sales Revenue


Product NA EU Asia
A $4.00 $4.50 $4.55
B $3.70 $3.90 $3.95
C $2.70 $2.90 $2.40
D $6.80 $6.50 $6.90

Available Raw Material


Magnet 120,000
Wire 50,000
Casing 40,000
Raturi Chemicals

Processing Demand
Product Variable cost/lb hours/lb Month 1 Month 2 Month 3
1 $9.00 0.06 1,000 800 1,000
2 $6.75 0.05 1,000 900 500
3 $5.25 0.2 600 600 500
4 $7.50 0.11 - 200 500
Reddy & Rao

Model A Model B Model C Model D


Cost per Unit $ 900.00 $ 650.00 $ 500.00 $ 750.00
Hours Required per unit 40 22 12 34

Demand (Units) Model A Model B Model C Model D


Month 1 7 4 4 9
Month 2 7 4 5 4
Month 3 6 8 8 6
Jason Wright

Month Income Expenses


Jan $3,400 $3,360
Feb $3,400 $2,900
Mar $3,400 $6,600
Apr $9,500 $2,750
May $3,400 $2,800
Jun $5,000 $6,800
Jul $4,600 $3,200
Aug $3,400 $3,600
Sep $3,400 $6,550
Oct $3,400 $2,800
Nov $3,400 $2,900
Dec $5,000 $6,650
Pavlick Products

Shipping Cost
Plant Cost/Unit per 500 units Sale Price
China $333 $10,000 $400
Mexico $350 $2,000

Month January February March April May June


Customer Demand 14,000 16,000 14,000 14,000 16,000 10,500

Mexican Plant Capacity - 2,500 5,000 7,500 10,000 12,500


July August September October November December
14,000 20,000 20,000 16,000 14,000 10,500

15,000 15,000 15,000 15,000 15,000 15,000


Kernan Services Corporation

Marketing Medium Cost/ad Exposure value/ad Min units Max units


Radio $500.00 2,000 0 15
TV $2,000.00 4,000 10
Magazine $200.00 2,700 6 12
Klein Industries

Monthly Sales Small Medium Large


Minimum 14,000 6,200 2,600
Maximum 21,000 12,500 4,200

Time Required Small Medium Large Available Time


Bending/forming 0.4 0.7 0.8 23,400
Welding 0.6 1 1.2 23,400
Painting 1.4 2.6 3.1 46,800

Small Medium Large


Unit Profit $20.50 $34.00 $42.00
Fruity Juices, Inc.
Minutes
Minutes/batch Apple Cherry Pomegranate Orange Pineapple Available
Blend 23 22 18 19 19 5,000
Strain 22 40 20 34 22 3,000
Bottle 10 10 10 10 10 5,000

Apple Cherry Pomegranate Orange Pineapple


Profit ($/1000 gal.) $800 $320 $1,120 $1,440 $800
Max Sales (000) 20 30 50 50 20
Min Sales (000) 10 15 20 40 10
Worley Fluid Supplies

Control valve Metering pump Hydraulic cylinder


Assembly time (min) 45 20 30
Testing time (min) 20 15 25
Profit/unit $372.00 $174.00 $288.00
Maximum sales 20 50 45
Minimum sales 5 12 22

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