Exercises 2 & 4 - Unit 5 PDF

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Download Exercises 2 & 4 - Unit 5 PDF

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ERGASHEV TEMUR

Exercises : No 2 & No 4 – UNIT 5 Exercise #4

Supplier A

Supplier B

Category

Product

Company

Service

Weight

40%

20%

20%

Sales Staff 20%

Evaluation Points

4+2+2

2+2+2+2+2+2+2

3+3+2

2+2+2

In Total Value

8

14

8

6

3.2

2.8

1.6

Category

Product

Company

Service

Weight Evaluation Points

40%

20%

20%

1.2 Sales Staff 20%

4+2+2

2+2+4+3+3+2+2

3+3+3

2+2+3

8 3.2

18 3.6

9 1.8

7 1.4

In Total Value

Total

100% 36 8.8 Total

100% 42 10

-Answer; as it is clear, the Value Results, “Supplier B” is more valuable in order to be chosen as the Supplier with 10 points, while “Supplier A” holds less 8.8 value points. -------------------------------------------------------------------------------------------Exercise #2 Category

Amortization

Renting

FC

€ 2,000

€ 2,000

VC

-

-

Price / unit Unit VCU= VCU=

Manufacturing Sales cost (5%fixed) commission € 500 € 9,500

€ 15 1000 Total VC/Total Unit 11,000 / 1000 =

€ 11

/unit

€ 1,500

In Total € 4,500 € 11,000

ERGASHEV TEMUR

Possible Total Revenue = P * Q = 15 * 1000 = €15000 Production Cost = FC + (VCu * Q) = 4,500 + (11 * 1,000) = €15 500 Total Units = FC / (P – VCu) = 4500 (15-11) = 1,125 units

-Answer; It is more profitable to buy it from an outside supplier who has been quoting a price of 15€ per unit....