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Metrics Madness Fall 2013 Review

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Metrics Madness Review Fall 2013

1. The local Mastermind store sells innovative educational toys. Part of their service is giving advice to customers about the best toys for a particular age group, which requires having more customer service representatives in the store. During the month long Christmas buying season, it makes half of its $500,000 yearly sales. Its contribution margin on average is 40% and its fixed costs for the year are about $150,000. The owner believes that she could make even higher sales, if she had more customer service representatives on the floor during the peak season. She plans on hiring four more people for 200 hours each at $20 per hour. How much additional revenue does she have earn to the nearest dollar …show more content…

How much would it cost an employee to purchase the dishwasher during the holiday season to the nearest dollar?

11. The table below shows the sales revenue (in billion dollars) of Canadian food retailers: Food Retailer | Sales revenue (billions) | Loblaw | $46 | Sobeys | $21 | Metro | $10 | Costco | $7 | Canadian Safeway | $6 | Walmart Canada | $5 | Co-op’s | $3 | Shoppers Drug Mart | $2 | Total | $100 |

What is the Herfindahl index for the Canadian food industry rounded to two decimal points and how is the food market characterized in Canada in terms of concentration?

12. Straubelstone manufactures specialty barbecues. Dakota, one of Straubelstone products, sells for $800 each. Straubelstone sold 1200 units of Dakota in 2012. The following table shows all costs associated with Dakota production:

Description | Cost | Insurance | $960/year | Materials | $261/ barbecue | Overhead | $5,800/month | Packaging | $24/ barbecue | Rent | $4,000/month | Utilities | $720/month | Wages | $5000/ month |

What is the total annual fixed cost of Dakota production to the nearest dollar?

13. Sunglass Hut purchases a pair of Tiffany sunglasses from a wholesaler for $180 and sells it for $300. If the wholesaler increases its price by 20%, to the nearest dollar, what should Sunglass Hut charge in order to maintain the same percent margin?

14. MasterCraft

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