What revenue would company expect from imposing the fee

Assignment Help Operation Management

Reference no: EM132111564

A manufacturing company doesn't charge its customers for shipping. It's products are small and lightweight, so there isn't much difference between the cost to ship small orders and large orders. Shipment costs average $84 per. The company has a challenge to reduce its costs. One idea they are considering is charging customers for small orders. They did a survey asking customers what they would do if the company imposed a $90 fee on orders <$500. Of the 172 customers surveyed, 51 indicated they would pay the fee. The others said they would consolidate their orders. Last quarter, the company processed 65,104 shipments.

Using last quarter's shipping volume and the survey, what revenue would the company expect from imposing the fee?

Reference no: EM132111564

Questions Cloud

Here are some ways of capturing it and using it effectively : To be useful, organizational “knowledge” has to be captured and used. Here are some ways of capturing it and using it effectively:

What variable has the lowest expenditure : STAT200 - Descriptive Statistics Analysis and Writeup - University of Maryland - Briefly discuss each variable in the same sequence as presented

Nuclear accident at prototype fast breeder reactor : On December 8, 1995, a prototype nuclear reactor, Monju, located in Tsuruga City, 350km west of Tokyo, was operating at 40% power.

Second source of network effects : The second source of Network Effects is in the new offshore oil exploration platform that we are manufacturing. The greater the number of units we manufacture

What revenue would company expect from imposing the fee : Using last quarter's shipping volume and the survey, what revenue would the company expect from imposing the fee?

What are the limits of stay-and-defend : What are the limits of stay-and-defend? What are the benefits? This question has to do with Emergency Management

Prefer the option with manual mechanized processing : If the demand exceeds the point of? indifference, then Zan and Angela should prefer the option with manual mechanized processing.

Explain the methodology that underpinned your analysis : Describe how the focus of your analysis is aligned with the interests of your audience. Explain the methodology that underpinned your analysis.

Who is responsible for establishing the performance measures : The President of EEC realizes that the balanced scorecard translates an organization's mission and strategy into operational objectives and performance measures

User Account

All Pages