NP_EX_8_Bikes
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Date
May 6, 2024
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05/04/2024
71c557c2221c481092d3804c8146d51b2ce029a5.xlsx Page 1
Documentation
Athena Cycles
Author
Elizabeth Marcoux
Date
5/4/2024
Purpose
To perform a break-even analysis of Trail I mountain bike sales and to determine the product mix that optimizes company profits among four Athena Cycles mountain bikes
Scenario Summary
Current Values:
Status Quo Increased Production
Changing Cells:
Units_Sold
1,200 1,200 1,500 Sales_Price_per_Unit
$900
$900
$800
Salaries_and_Benefits
$ 175,000 $ 175,000 $ 175,000 Shipping_and_Distribution
72,000 72,000 90,000 Stocking_and_Storage
65,000 65,000 75,000 Miscellaneous
55,000 55,000 70,000 Result Cells:
Total_Revenue
1,080,000 1,080,000 1,200,000 Total_Expenses
1,027,000 1,027,000 1,235,000 Net_Income
$ 53,000 $ 53,000 $ (35,000)
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
Decreased Production
1,000 $950
$ 145,000 60,000 55,000 40,000 950,000 850,000 $ 100,000
71c557c2221c481092d3804c8146d51b2ce029a5.xlsx Income Statement 05/04/2024
Athena Cycles
Income Analysis for the Trail I Mountain Bike
Break-Even Analysis
Net Income Analysis
Revenue
Units Sold
Revenue
Expenses
Net Income
Sales Price
Units Sold
1,200 1,200 $ 1,080,000 $ 1,027,000 $ 53,000 Units Sold
$800 $900 $1,000 $1,100 $1,200 Sales Price per Unit
$900
250 225,000 504,500 (279,500)
250 (304,500)
(279,500)
(254,500)
(229,500)
(204,500)
Total Revenue
$ 1,080,000 500 450,000 642,000 (192,000)
500 (242,000)
(192,000)
(142,000)
(92,000)
(42,000)
750 675,000 779,500 (104,500)
750 (179,500)
(104,500)
(29,500)
45,500 120,500 Variable Expenses
1,000 900,000 917,000 (17,000)
1,000 (117,000)
(17,000)
83,000 183,000 283,000 Units Produced
1,200 1,250 1,125,000 1,054,500 70,500 1,250 (54,500)
70,500 195,500 320,500 445,500 Material Cost per Unit
$425
1,500 1,350,000 1,192,000 158,000 1,500 8,000 158,000 308,000 458,000 608,000 Total Material Cost
510,000 1,750 1,575,000 1,329,500 245,500 1,750 70,500 245,500 420,500 595,500 770,500 Manufacturing Cost per Unit
$125
2,000 1,800,000 1,467,000 333,000 2,000 133,000 333,000 533,000 733,000 933,000 Total Manufacturing Cost
150,000 Total Variable Expenses
$ 660,000 Fixed Expenses
Salaries and Benefits
$ 175,000 Shipping and Distribution
72,000 Stocking and Storage
65,000 Miscellaneous
55,000 Total Fixed Expenses
$ 367,000 Summary
Total Revenue
1,080,000 Total Expenses
1,027,000 Net Income
$ 53,000 - 500 1,000 1,500 2,000 2,500 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 CVP Analysis
Revenue
Expenses
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 (400,000)
(200,000)
0 200,000 400,000 600,000 800,000 1,000,000 Break-Even Analysis
500
1000
1500
2000
2500
Your preview ends here
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Related Questions
Required information
Skip to question
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company’s products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks:
Week
Units
Total Etching Cost
1
9
$ 21
2
12
25
3
13
30
4
9
20
5
11
25
6
18
34
72
$ 155
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week.
2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.
2-b. Express these estimates in the form Y = a + bX.
arrow_forward
Question 1After collecting all those information, David is trying to conceptualize his problem. Supposeyou were David, how you will analysing the problem.You are expected to describe and investigate the problem in a more systematic way, andprovide answers for:• What were the key decisions?• What were the key uncertainties?• What was the timing of decisions?• What was the timing of the resolution of uncertainty?• What data would he need in order to make an intelligent, defensible decision?
arrow_forward
Required information
Lyndia Company is a merchandiser that sells a total of 15 products to its customers. The company provided the following
information from last year:
Selling Price
Variable Cost
Product
1
Unit Sales
per Unit
per Unit
9,000
$ 29
$12.95
2
16,500
$ 99
$68.55
3
6,000
$ 85
$42.50
4
19,500
$109
$85.00
5
4,500
$ 19
$ 6.35
6
27,000
$119
7
3,000
$ 39
$92.00
$14.30
8
7,500
$ 79
$33.18
9
9,000
$
69
$30.36
10
15,000
$.95
$77.60
11
10,500
$ 59
$25.40
12
1,500
$
65
$29.00
222
13
3,000
$
44
$12.40
141
6,000
$ 49
$13.48
15
12,000
150,000
$ 89
$61.83
Last year, Lyndia's total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The
company would like your assistance in developing some financial projections for this year.
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QUESTION 4
Calculate four periods moving average forecast from the following last six periods
Period
Demand
1
38
40
42
4
40
44
38
O a. 40
Ob.41
Ос. 42
Od. 43
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Question 1
The monthly demand of a company is showed below, please use the static method to forecast the
demand for Year 6.
Sales
Year 1
Year 2
Year 3
Year 4
Year 5
JAN
2,000
3,000
2,000
5,000
5,000
FEB
3,000
4,000
5,000
4,000
2,000
MAR
3,000
3,000
5,000
4,000
3,000
APR
3,000
5,000
3,000
2,000
2,000
MAY
4,000
5,000
4,000
5,000
7,000
JUN
6,000
8,000
6,000
7,000
6,000
JUL
7,000
3,000
7,000
10,000
8,000
AUG
6,000
8,000
10,000
14,000
10,000
SEP
10,000
12,000
15,000
16,000
20,000
OCT
12,000
12,000
15,000
16,000
20,000
NOV
14,000
16,000
18,000
20,000
22,000
DEC
8,000
10,000
8,000
12,000
8,000
Total
78,000
89,000
98,000
115,000
113,000
arrow_forward
Question 2
Historical demand for gulab jamun from a sweet stall on Commercial Road is as displayed in the table.
Month
Demand (orders)
January
66,753
February
67,686
March
68,641
April
68,979
May
69,278
June
69,577
July
69,602
August
70,348
September
70,806
October
71,011
November
71,819
December
72,752
What is the forecast for June using Holt's model with an alpha of 0.1 and a beta of 0.2?
69121
69612
70564
63545
Full explain this question text typing
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Question 3:
Jane is trying to forecast demand for her store, using moving average with n=2,
Fill in the missing cells with correct values and find average error for first quarter and second quarter of year
2000
E
Enroll-
Year
Quarter
ment
Forecast
Error
Abs Error
1997
313
3.
2
285
4
3
312
5.
4
339
6.
1998
1
359
7
320
356
385
6.
10
1999
396
367
11
397
12
423
13
14
2000
1
15
2000
3412M4
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The manager of a bulk foods establishment sells a trail mix for
$9
per pound and premium cashews for
$14
per pound. The manager wishes to make an
200-pound
trail mix-cashew
mixture that will sell for
$11
per pound. How many pounds of each should be used?
Question content area bottom
Part 1
A.
80
lb of trail mix
120
lb of cashews
B.
100
lb of trail mix
100
lb of cashews
C.
140
lb of trail mix
60
lb of cashews
D.
120
lb of trail mix
80
lb of cashews
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Question 4
b) Company ABC wishes to evaluate whether to produce a component
internally or purchase from a vendor. The firm has the following options:
Internal Production
Process 1
Process 2
Purchase from Vendor
Vendor 1
Vendor 2
Vendor 3
Variable cost of $17 per unit; annual
fixed cost of $200,000
Variable cost of $14 per unit; annual
fixed cost of $240,000
Offers a price of $20 per unit for any
volume up to 30,000 units
Offers a price of $22 per unit for 1,000
units or less, and $18 per unit for
large quantities
Offers a price of $21 per unit for the
first 1,000 units and $19 per unit for
additional units
If the annual demand is 10,000 units, which alternative would be best from
a cost standpoint? For 20,000 units, which alternative would be best?
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Operations Management CH 3
QUESTION 22
Tucson Machinery, Incorporated, manufactures numerically controlled machines, which sell for an average price of $0.5 million each. Sales for these NCMs for the past two years were as follows: Use Exhibit 3.10.
QUARTER LAST YEAR
QUANTITY (UNITS)
QUARTER THIS YEAR
QUANTITY (UNITS)
I
12
I
16
II
18
II
24
III
26
III
28
IV
16
IV
18
a) Find a line using regression in Excel. Note: Round your answers to 3 decimal places.
y =
________
+
________
t
b)Find the trend and seasonal indexes. Note: Round your answers to 3 decimal places.
Period
Trend Forecast
Seasonal Factors
Last Year
I
Last Year
II
Last Year
III
Last Year
IV
This Year
I
This Year
II
This Year
III
This Year
IV
This
is
left
blank
This
is
left
blank
This
is
left
blank
c) Forecast sales for next year. Note: Round your answers to 2 decimal places.
Period
Forecast (Units)
Next Year
I
Next…
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Question 2
"In air cargo revenue management, for every flight we operate, we first must forecast the capacity so we can understand how much space we can sell. Unlike on the passenger side where the number of seats is rather standard, the cargo capacity will vary based on the route, the aircraft, the number of passengers, the number of bags passengers are carrying and other metrics."
Karri Kauppi, Head of Cargo Revenue Management & Pricing, Finnair
Source: The Complexities of Air Cargo Revenue Management
https://www.kambr.com/articles/the-complexities-of-air-cargo-revenue-management
(a) According to Karri Kauppi, cargo revenue management (CRM) is complex. The first thing in CRM is to forecast the air cargo capacity which would depend on factors e.g. the route, the aircraft, the number of passengers, the number of bags and other metrics.
Appraise how Karri practises CRM in forecasting air cargo capacity and pricing available cargo space for sale in order to maximize profitability.…
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QUESTION 4
A company's focus should be on how to move from a demand-driven mentality to a forecast-driven mentality.
True
False
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question
10. The forecast was 70 units for the current period while actual demand was 76. The forecast for the next period is 75.8. What's alpha if a simple exponential smoothing forecast methoc
being used?
6
OA. 0.097
OB. 0.967
OC. 0.004
OD. 0.040
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Part B
Three-period
Four-period
Units
Units Demanded
Period
weighted moving weighted moving
Demanded
Three-period weighted moving average forecast
average forecast
average forecast
Four-period weighted moving average forecast
24
2
25
60
28
50
49
S50
4
32
26.33
46
4.90
39,80
40
41
5
35
29.50
28.6
38
35
38
32.83
31.7
30
32
28
25
26,93 250 es
7
41
36.00
34.9
24
20
8
46
39.00
38
49
43.00
41.8
10
10
53
46.67
45.4
50.50
49.2
1
2
3
4
5
6
7
8
9
10
11
1. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)
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7.
Question content area left
Part 1
Leah Johnson, director of Urgent Care of Brookline, wants to increase capacity to provide low-cost flu shots but must decide whether to do so by hiring another full-time nurse or by using part-time nurses. The table below shows the expected costs of the two options for three possible demand levels:
States of Nature (demand)
Alternatives
Low
Medium
High
Hire full−time
$300
$480
$680
Hire part−time
$0
$340
$1,200
Probabilities
0.20
0.55
0.25
Part 2
a) The alternative with the least expected cost is
▼
a. Hire full-time
b. Hire part-time
The expected cost of this alternative is
$ ______
(enter your answer as a whole number).
.
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Cluster analysis is often used for what business purpose?
Question 12 options:
Predicting product demand
Segmenting customers
Assessing product success
Forecasting future revenue
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Q3. Explain two strategies that a firm can use to reduce competition from existing competitors.
Pleases expain with the diagram
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Question 8 of 11
XYZ Corp is projecting its operating expenses. Where should XYZ anticipate most of its variable costs will be located?
Select an answer:
in any changes to the product mix
in revenues increases
in employee salaries
in the cost of goods sold
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Question 2
Mike is a first year university student who is trying to understand his financial situation. Mike currently lives 1.5 miles away from campus. He works part time in a retail centre that pays him £800 per month. Mike saves £200 out of the part time job pay for his further education plan.
a). As to the below Travel Expenses table published by the Students’ Union, 185 students were randomly selected to help understand the travel expenses and distance to campus. What’s the probability for Mike to spend over £10 on journeys to campus?
Distance to Campus (miles)
Amount spent, £
0.1 to 0.25
0.26 to 1.0
Over 1.0
0 – 4.99
35
26
10
5.00 – 9.99
18
39
20
10.00+
4
14
19
b). How much is the frequency for students living over 1 mile away from the campus?
c). As to the category of Amount Spent, £, what is the modal group?
d). Assuming Mike is saving the same amount per month in the next 3 years. How much does Mike get for his saving…
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QUESTION #1
Mrs. Johnson, the owner of a small manufacturing business has patented a new device for
kitchen appliance. Before trying to commercialize the device and add it to her existing product
line, the she wants reasonable assurance of success. Variable costs are estimated at $8 per unit
produced and sold. Fixed costs are about $60,000 per year.
a. Forecasted sales for the first year are 15,000 units if the price is reduced to $20. With this
pricing strategy, what would be the product's total contribution to profits in the first year?
b. If the selling price is set at $30, how many units must be produced and sold to break even?
Use both algebraic and graphic approaches
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Question 1Winter Blues is a company that specializes in the sales of Wedding Dresses to individuals and companies. Winter Blues year end is 30 June 2021. The audit manager has tasked you with reviewing their computer system. Background Information The business was started in 2010 by Mirram Mulwanda as a small boutique. Over the years multiple stores were opened across Namibia. It has been Namibia’s dream to grow the business and sell to all the provinces of Namibia. In 2015 the sales clerk suggested to Mirram to introduce selling via the internet through Instragram Boutique System. That way she will grow her market by reaching her customers wherever they are. Mirriam tasked the IT department with the development of Instragram Boutique System in as she was not comfortable with purchasing a Computerized System. Additional Information regarding the business operations Ordering of goods is done by Mirriam the order clerk using a terminal that has been allocated to her. Orders are received…
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Question Completion Status:
Year
1
2
seconds.
Tucson Macninary, Inc. manufacturers numerically controlled macnines (NCMS), which sell for an average price of $0.5 million each. Sales for these NCMS for the past two years were as
follows:
P
Quarter 1 Quarter 2 Quarter 3 Quarter 4
12
18
26
16
16
24
28
18
What season factor would be associated with the fourth quarter?
Show the formula you used and how you derived the answer.
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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Related Questions
- Required information Skip to question George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company’s products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week Units Total Etching Cost 1 9 $ 21 2 12 25 3 13 30 4 9 20 5 11 25 6 18 34 72 $ 155 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bX.arrow_forwardQuestion 1After collecting all those information, David is trying to conceptualize his problem. Supposeyou were David, how you will analysing the problem.You are expected to describe and investigate the problem in a more systematic way, andprovide answers for:• What were the key decisions?• What were the key uncertainties?• What was the timing of decisions?• What was the timing of the resolution of uncertainty?• What data would he need in order to make an intelligent, defensible decision?arrow_forwardRequired information Lyndia Company is a merchandiser that sells a total of 15 products to its customers. The company provided the following information from last year: Selling Price Variable Cost Product 1 Unit Sales per Unit per Unit 9,000 $ 29 $12.95 2 16,500 $ 99 $68.55 3 6,000 $ 85 $42.50 4 19,500 $109 $85.00 5 4,500 $ 19 $ 6.35 6 27,000 $119 7 3,000 $ 39 $92.00 $14.30 8 7,500 $ 79 $33.18 9 9,000 $ 69 $30.36 10 15,000 $.95 $77.60 11 10,500 $ 59 $25.40 12 1,500 $ 65 $29.00 222 13 3,000 $ 44 $12.40 141 6,000 $ 49 $13.48 15 12,000 150,000 $ 89 $61.83 Last year, Lyndia's total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The company would like your assistance in developing some financial projections for this year.arrow_forward
- QUESTION 4 Calculate four periods moving average forecast from the following last six periods Period Demand 1 38 40 42 4 40 44 38 O a. 40 Ob.41 Ос. 42 Od. 43arrow_forwardQuestion 1 The monthly demand of a company is showed below, please use the static method to forecast the demand for Year 6. Sales Year 1 Year 2 Year 3 Year 4 Year 5 JAN 2,000 3,000 2,000 5,000 5,000 FEB 3,000 4,000 5,000 4,000 2,000 MAR 3,000 3,000 5,000 4,000 3,000 APR 3,000 5,000 3,000 2,000 2,000 MAY 4,000 5,000 4,000 5,000 7,000 JUN 6,000 8,000 6,000 7,000 6,000 JUL 7,000 3,000 7,000 10,000 8,000 AUG 6,000 8,000 10,000 14,000 10,000 SEP 10,000 12,000 15,000 16,000 20,000 OCT 12,000 12,000 15,000 16,000 20,000 NOV 14,000 16,000 18,000 20,000 22,000 DEC 8,000 10,000 8,000 12,000 8,000 Total 78,000 89,000 98,000 115,000 113,000arrow_forwardQuestion 2 Historical demand for gulab jamun from a sweet stall on Commercial Road is as displayed in the table. Month Demand (orders) January 66,753 February 67,686 March 68,641 April 68,979 May 69,278 June 69,577 July 69,602 August 70,348 September 70,806 October 71,011 November 71,819 December 72,752 What is the forecast for June using Holt's model with an alpha of 0.1 and a beta of 0.2? 69121 69612 70564 63545 Full explain this question text typingarrow_forward
- Question 3: Jane is trying to forecast demand for her store, using moving average with n=2, Fill in the missing cells with correct values and find average error for first quarter and second quarter of year 2000 E Enroll- Year Quarter ment Forecast Error Abs Error 1997 313 3. 2 285 4 3 312 5. 4 339 6. 1998 1 359 7 320 356 385 6. 10 1999 396 367 11 397 12 423 13 14 2000 1 15 2000 3412M4arrow_forwardThe manager of a bulk foods establishment sells a trail mix for $9 per pound and premium cashews for $14 per pound. The manager wishes to make an 200-pound trail mix-cashew mixture that will sell for $11 per pound. How many pounds of each should be used? Question content area bottom Part 1 A. 80 lb of trail mix 120 lb of cashews B. 100 lb of trail mix 100 lb of cashews C. 140 lb of trail mix 60 lb of cashews D. 120 lb of trail mix 80 lb of cashewsarrow_forwardQuestion 4 b) Company ABC wishes to evaluate whether to produce a component internally or purchase from a vendor. The firm has the following options: Internal Production Process 1 Process 2 Purchase from Vendor Vendor 1 Vendor 2 Vendor 3 Variable cost of $17 per unit; annual fixed cost of $200,000 Variable cost of $14 per unit; annual fixed cost of $240,000 Offers a price of $20 per unit for any volume up to 30,000 units Offers a price of $22 per unit for 1,000 units or less, and $18 per unit for large quantities Offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units If the annual demand is 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?arrow_forward
- Operations Management CH 3 QUESTION 22 Tucson Machinery, Incorporated, manufactures numerically controlled machines, which sell for an average price of $0.5 million each. Sales for these NCMs for the past two years were as follows: Use Exhibit 3.10. QUARTER LAST YEAR QUANTITY (UNITS) QUARTER THIS YEAR QUANTITY (UNITS) I 12 I 16 II 18 II 24 III 26 III 28 IV 16 IV 18 a) Find a line using regression in Excel. Note: Round your answers to 3 decimal places. y = ________ + ________ t b)Find the trend and seasonal indexes. Note: Round your answers to 3 decimal places. Period Trend Forecast Seasonal Factors Last Year I Last Year II Last Year III Last Year IV This Year I This Year II This Year III This Year IV This is left blank This is left blank This is left blank c) Forecast sales for next year. Note: Round your answers to 2 decimal places. Period Forecast (Units) Next Year I Next…arrow_forwardQuestion 2 "In air cargo revenue management, for every flight we operate, we first must forecast the capacity so we can understand how much space we can sell. Unlike on the passenger side where the number of seats is rather standard, the cargo capacity will vary based on the route, the aircraft, the number of passengers, the number of bags passengers are carrying and other metrics." Karri Kauppi, Head of Cargo Revenue Management & Pricing, Finnair Source: The Complexities of Air Cargo Revenue Management https://www.kambr.com/articles/the-complexities-of-air-cargo-revenue-management (a) According to Karri Kauppi, cargo revenue management (CRM) is complex. The first thing in CRM is to forecast the air cargo capacity which would depend on factors e.g. the route, the aircraft, the number of passengers, the number of bags and other metrics. Appraise how Karri practises CRM in forecasting air cargo capacity and pricing available cargo space for sale in order to maximize profitability.…arrow_forwardQUESTION 4 A company's focus should be on how to move from a demand-driven mentality to a forecast-driven mentality. True Falsearrow_forward
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