Calculate the optimum profit, Corporate Finance

XYZ plc has a Visitor Centre based in Perth.  The Centre houses exhibitions and educational resources to be used by schools, colleges and visitors.  It is a popular facility due to its innovative interactive displays and the care XYZ plc has taken to link the centre's resources to the school and college curriculum.

The Centre also hosts short courses in four main areas:

  • History of the textile industry in Scotland
  • Sociology and the textile industry
  • Economic and Financial Management within the textile industry
  • Traditional and modern spinning methods

Each of these courses runs over a number of sessions which take a different amount of time and incur different expenses.  The session prices reflect these differences.

The Visitor Centre currently has eight staff who work different hours and are qualified to deliver different courses.  The following table shows the hours each member of staff works and the courses they are qualified to provide.

Employee

Hours per week

History

Sociology

Management

Spinning

1

40

2

40

3

40

4

20

 

5

20

 

6

20

 

 

7

10

 

 

 

8

10

 

 

 

You have also been provided with the following information for the last quarter (12 weeks):

 

History

Sociology

Management

Spinning

Estimated session demand

400

300

800

300

Time per session

1 hour

1.5 hours

2 hours

3.5 hours

Price per session (£)

10

15

30

52.50

Variable cost per hour (£):

 

 

 

 

Materials

1.00

1.50

2.50

3.00

Expenses

1.00

1.50

1.00

1.50

Wages

5.00

5.00

6.50

6.50

Fixed overheads for the last quarter (12 weeks) totalled £3,000.

Required

a) Given the current staff restrictions, calculate the optimum course mix and optimum profit for the quarter.

b) Assuming that all eight staff was qualified to provide all four courses, calculate the optimum course mix and profit for the quarter.

c) Describe the importance of qualitative factors in the decision making process.

Posted Date: 2/23/2013 4:26:17 AM | Location : United States







Related Discussions:- Calculate the optimum profit, Assignment Help, Ask Question on Calculate the optimum profit, Get Answer, Expert's Help, Calculate the optimum profit Discussions

Write discussion on Calculate the optimum profit
Your posts are moderated
Related Questions
An original United States silver dollar from the late 1800s consists of about 24 grains of silver.  Suppose that at current prices, the silver content of this coin is worth $2.25.

Baobab rolling mills owns a lathe machine which was purchased 10years ago at sh. 75 million. The machine had an expected life of 15 yrs at the time it was purchased, and management

differentiate between aloocative effiency and pricing effiency

project work on factor affecting capital structure.

differentiate between allocative efficiency and pricing efficiency.

#quOn Completion of her introductory finance course, Kieran was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were w

explain key assumptions of Baumol cash management model

What will happen to the required rate of return (SML) if the following events occur: a)      Inflation expectations increase b)      Investors become more risk averse c)

I have a Finance project due and I was wondering if I could get some help with it? Please advise. Thanks..

Question: A. Explain in details two securities quoted at par and two securities quoted on a discount. B. Calculate the return on a deposit of £ 1,000,000 bearing an annual