Complete the X-over Printer Selection Student with plot Spring file (break-even and profit analysis for an Inkjet and Laserjet
Part 1 20 points Complete the X-over Printer Selection Student with plot Spring file (break-even and profit analysis for an Inkjet and Laserjet printer option (File attached) Plot the total costs of the two alternatives showing the X-over point. Make your plot look professional. Additional instructions in the file
Part 2 30 points Complete the Warehouse Options Spring per the instructions in the file.
Instructions
| Four Warehouse options have information about the various costs to help make a good economic decision on which is the best choice. Use a formula to calculate each of the yellow boxes on the Warehouse problem page. Note: On variable cost you should use the cost per pallet info to get your final answer. You may use cost per pound to calculate but I would not recommend doing so. At present, the plan is to store 30 million pounds of frozen product in a leased warehouse. Cells B13, D13, F13, and G13 are the final total cost for each option and are in gray. Make sure to show your formulas for full credit. All the information and calculations may or may not be needed to calculate cost as there are multiple ways and formulas to get to the correct answers. All of the yellow and gray highlighted boxes must be populated even if you do not use them in the final calculation. The text box at the bottom should contain a brief explanation of why you chose a specific option. All options have good access to the interstate highway system. Option 4 has a rail dock and the others do not. The hours of operation at Options 1 and 2 are 5 am to 1 am while Options 3 and 4 are open from 5:30 am to 1:30 am. Options 1 and 2 use the same outside freight hauler to make deliveries, Option 4 uses a service that uses special software that allows you to track exactly where the trailer is from the time it leaves the warehouse, and Option 3 operates it's own fleet of trailers. Assume each pallet is stored in the warehouse for 30 days or less. |
Warehouse problem
| Warehouse Problem | See instruction tab for further information | |||||||||||||||||
| Option 1 | Option 2 | Option 3 | Option 4 | |||||||||||||||
| Lease cost | $ 250,000 | $ 100,000 | $ 750,000 | – 0 | ||||||||||||||
| Pallet charge in | 12.00 | 14.00 | – 0 | 20.00 | ||||||||||||||
| Pallet charge out | 12.00 | 12.50 | – 0 | |||||||||||||||
| Pallet storage charge per month | 5.00 | 10.00 | 7.50 | 20.00 | ||||||||||||||
| Freight charge per truck from warehouse to plant | 125.00 | 150.00 | 100.00 | 150.00 | ||||||||||||||
| Miles to plant | 15 | 23 | 8 | 9 | ||||||||||||||
| Variable cost per pallet or | total pounds | lbs per pallet | Pallets per truck | Pallets per year | Trucks per year | trucks per month | trucks per week | |||||||||||
| Variable cost per pound NA | 30,000,000 | 1350 | 20 | |||||||||||||||
| Fixed cost | ||||||||||||||||||
| Total cost | ||||||||||||||||||
| Volume (lbs) | ||||||||||||||||||
| 30,000,000 | ||||||||||||||||||
| Best option at 30 million pounds | ||||||||||||||||||
Why did you select this option?
,
Sheet1
| Printer Selection | ||||||||||
| X-Over Point | ||||||||||
| I am trying to decide whether to purchase an inkjet printer or a laserjet printer for home use. For an Inkjet, I can purchase a HP Envy 5055 for $80 from Best Buy. For a laserjet, I like the Brother HL-L5100 which goes for $150 from Staples. Now printing cost are different for the two options. Ink cost for a laserjet costs about $.02 per page to print, while an inkjet will cost about $.10 per page for ink. Paper for each printer is $.015 per page and electricity is $.05 per page. Due to special maintenance needs, the inkjet incurs a cost of $.005 per page. | ||||||||||
| A) For my printer problem, determine the cross-over point (pages) for the two options, and B) Briefly explain what I should do if COST is my only concern. | ||||||||||
| Cells require a calulation formula. | ||||||||||
| Cells may require an input | Break-even | |||||||||
| BEP = F/(P-V) | BEP – Break-even point | |||||||||
| Inkjet Printer | Laser Printer | Profit at volume | F – Fixed cost | |||||||
| Prof = (P-V)*Q – F | V – Variable cost per unit | |||||||||
| Required volume for given profit | ||||||||||
| Q = (Prof + F)/(P-V) | Profit – | |||||||||
| Q – Quantity Sold | ||||||||||
| Total Fixed Cost | Total Fixed Cost | |||||||||
| X-Over Point | Point of Indifference | |||||||||
| per page | per page | (F2-F1)/(V1-V2) | ||||||||
| per page | per page | |||||||||
| per page | per page | |||||||||
| per page | per page | |||||||||
| Total Variable Cost | Total Variable Cost | |||||||||
| Volume Pages | Inkjet Cost | Laserjet Cost | Total Cost = F + V*Q or F + V*X | |||||||
| 100 | (We are using X as our target quantity (or Q). It is the quantity at which total costs for two options are equal. | |||||||||
| 200 | ||||||||||
| 300 | Plot the total costs for the two alternatives showing the crossover point below. | |||||||||
| 400 | The X-over video should be helpful and the chart shown in this video is what your chart should look like but with different numbers | |||||||||
| 500 | ||||||||||
| 600 | ||||||||||
| 700 | ||||||||||
| 800 | ||||||||||
| 900 | ||||||||||
| 1000 | ||||||||||
| 1500 | ||||||||||
| At what volume will both Locations have the same cost (x-over point)? | ||||||||||
| X-Over = (F2-F1)/(V1-V2) | ||||||||||
| What should I purchase: |
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