Please complete all work in excel.  Use excel to make the calculations (cells can be clicked on to view any formulas used) and be sure to identify your answer, including units.  You must have an excel file with formulas within the cell. Gas & Go is considering offering movie rentals through a self-service company that would locate a machine on the inside of the market store. BlueBox would charge an annual lease fee of $500 for delivery, setup and maintenance, and there is an energy cost of $0.08 for every video rented. GreenFilms would charge an annual lease of only $400, but the energy cost for every video rental is $0.10 due to the larger size of the machine.  Customers rent each movie for $1.00, regardless of the company, and the Gas & Go would earn 30% of that revenue for each rental. a.At what forecasted volume should Gas & Go select BlueBox and what volume should the company select GreenFilms and why?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 44P
icon
Related questions
Question

1– Please complete all work in excel.  Use excel to make the calculations (cells can be clicked on to view any formulas used) and be sure to identify your answer, including units.  You must have an excel file with formulas within the cell.

Gas & Go is considering offering movie rentals through a self-service company that would locate a machine on the inside of the market store. BlueBox would charge an annual lease fee of $500 for delivery, setup and maintenance, and there is an energy cost of $0.08 for every video rented. GreenFilms would charge an annual lease of only $400, but the energy cost for every video rental is $0.10 due to the larger size of the machine.  Customers rent each movie for $1.00, regardless of the company, and the Gas & Go would earn 30% of that revenue for each rental.

  1. a.At what forecasted volume should Gas & Go select BlueBox and what volume should the company select GreenFilms and why?
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Optimization models
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,