Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 x 50equals the total rooms rented for the year). Tim's cost to clean a room is $12.50 The Duffy's Maid Service quote is $18.50 per room plus a fixed cost of $26,000 for sundry items such as uniforms with the motel'sname. Tim's annual fixed cost for space, equipment, and supplies is $60,000.Based on the given information related to costs for each of the options, the crossover point for Tim =room nights (round your response to the nearest whole number)4

Analysis of total cost helps businesses make informed financial decisions. Understanding the total…

Answered: Tim Urban, owner/manager of Urban's…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P

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Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 x 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.50. The Duffy's Maid Service quote is $19.00 per room plus a fixed cost of $26,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000. Based on the given information related to costs for each of the options the crossover point for Tim = room nights ( round your answer to the nearest whole number). If the number of room nights is less than the crossover point the (not outsourcing, outsourcing) is the best option available to Tim. Based on the given room nights that Tim expects to rent (18,250) the best option is (outsourcing, not outsourcing).
Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 × 50 equals the total rooms rented for the year). Tim's cost to clean a room is $12.50.The Duffy's Maid Service quote is $18.00 per room plus a fixed cost of $26,000for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000. Part 2 Based on the given information related to costs for each of the options, the crossover point for Tim = room nights (round your response to the nearest whole number). Part 3 If the number of room nights is less than the crossover point, then is the best option available to Tim.
K Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 x 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is $18.00 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000. Based on the given information related to costs for each of the options, the crossover point for Tim = (round your response to the nearest whole number). room nights elp
Tim Urban, owner/manager of Urban's Motor Courtin Key West, is considering outsourcing the daily room cleanupfor his motel to Duffy 's Maid Service. Tim rents an average of50 rooms for each of 365 nights (365 X 50 equals the total roomsrented for the year). Tim's cost to clean a room is $12.50. TheDuffy's Ma id Service quote is $18.50 per room plus a fixed costof $25,000 for sundry items such as uniforms with the motel'sname. Tim's annual fixed cost for space, equipment, and suppliesis $6 1,000. Which is the preferred process for Tim, and why?
J 1 ue K Beth Zion Hospital has received initial certification from the state of California to become a center for liver transplants. The hospital, however, must complete its first 10 transplants under great scrutiny and at no cost to the patients with the hospital picking the expenses. The cost per hour of surgery is estimated to be $5,000. The very first transplant, just completed, required 27 hours. On the basis of research at the hospital, Beth Zion estimates that it will have an 75% learning curve. Using Table E.3, estimate the time it will take to complete: a) the 10th transplant hours (round your response to two decimal places). Learning Curve Coefficients Unit Number (N) 10 Unit Time .385 75% Total Time 5.589 Unit Time .477 80% Total Time 6.315 Unit Time .583 85% Total Time 7.116 X
Handy-Maid Cleaning Service is considering off ering anadditional line of services to include professional offi ce cleaning.Annual fi xed costs for this additional service are estimated tobe $9000. Variable costs are estimated at $50 per unit of service.If the price of the new service is set at $80 per unit of service,how many units of service are needed for Handy-Maid to breakeven?10. Easy-Tech Soft ware Corporation is evaluating theproduction of a new soft ware product to compete with thepopular word processing soft ware currently available. Annualfi xed costs of producing the item are estimated at $150,000, andthe variable cost is $10 per unit. Th e current selling price of theitem is $35 per unit, and the annual sales volume is estimated at50,000 units.(a) Easy-Tech is considering adding new equipment thatwould improve soft ware quality. Th e negative aspect ofthis new equipment would be an increase in both fi xedand variable costs. Annual fi xed costs would increase by$50,000 and…
Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased next year Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM) The cost data follow Annual contracted units Annual fixed cost General Purpose Equipment (GPE) 200.000 $150.000 $15.00 Per unit variable cost The option GEE is best when the contracted volume is below units (enter your response as a whole number) Flexible Manufacturing System (FMS) 200,000 $250.000 $14.00 Dedicated Machine (DM) 200.000 $525,000 $13.00
Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle, Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 75,000 $100,000 $16.00 Flexible Manufacturing System (FMS) 75,000 $225,000 $14.00 Dedicated Machine (DM) 75,000 $450,000 $13.75 Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited…
t K Beth Zion Hospital has received initial certification from the state of California to become a center for liver transplants. The hospital, however, must complete its first 10 transplants under great scrutiny and at no cost to the patients with the hospital picking the expenses. The cost per hour of surgery is estimated to be $5,000. The very first transplant, just completed, required 27 hours. On the basis of research at the hospital, Beth Zion estimates that it will have an 75% learning curve. Using Table E.3, estimate the time it will take to complete: a) the 10th transplant 10.40 hours (round your response to two decimal places). Learning Curve Coefficients Unit Number (N) 10 b) The cost of 10th surgery to Beth Zion Hospital = $ 52000 (round your response to the nearest whole number). c) the first 10 transplants hours (round your response to two decimal places). Unit Time .385 75% Total Time 5.589 Unit Time .477 80% Total Time 6.315 Unit Time .583 85% Total Time 7.116 X
Q3) Case study below: Checkers plans to open its first “dark store” later this year to support growing demand for its Sixty60 on-demand grocery app. A dark store is a retail outlet that exists exclusively to support on-demand deliveries. It does not have a store front or retail customers, but purely assists with order fulfilment.It will be in Bree Street in Cape Town’s central business district, and comes as the group considers the capacity of its store base to meet the growing demand from SA’s leading grocery app.The Checkers Sixty60 one-hour delivery service was launched in November 2019 and order volumes continue to grow exponentially. It is already available in 300 locations across the country - up from 233 locations last year. About 23 000 products are on offer at in-store prices and it has created almost 6 300 jobs, according to Checkers. The need for such a store format is due to Checkers limiting the number of Sixty60 deliveries it can support from each retail store, which is…
A manufacturer plans to introduce a new shirt based on the following information. The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units. b) Draw a detailed break-even chart, making sure to label the variables on the y- and x-axes, as well as all other significant points in the chart c) Showing your calculations, calculate the break-even point (in units) if fixed costs are reduced to $7020
st K Beth Zion Hospital has received initial certification from the state of California to become a center for liver transplants. The hospital, however, must complete its first 10 transplants under great scrutiny and at no cost to the patients with the hospital picking the expenses. The cost per hour of surgery is estimated to be $5,000. The very first transplant, just completed, required 27 hours. On the basis of research at the hospital, Beth Zion estimates that it will have an 75% learning curve. Using Table E.3, estimate the time I will take to complete: a) the 10th transplant 10.40 hours (round your response to two decimal places). b) The cost of 10th surgery to Beth Zion Hospital = $ 52000 (round your response to the nearest whole number). c) the first 10 transplants 150.90 hours (round your response to two decimal places). d) The cost of all 10 surgeries to Beth Zion Hospital = $ Learning Curve Coefficients Unit Number (N) 10 Unit Time .385 75% Total Time 5.589 Unit Time .477…

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