A local skating rink charges each person $5 to skat, Supply Chain Management

Assignment Help:
A local skating rink charges each person $5 to skate and another $3 for each skate rental. The rink has determined that on a daily basis, when 100 tickets are sold, the costs per skater are $.50 for variable costs and $1 for fixed costs. The rink has the capacity for up to 175 skaters per day.

A local kid?s day camp has asked the rink to allow 35 children to skate for only $2.50 each on July 15, 2007. This price would include the cost of a skate rental as well as admission. During July, the rink averages 100 skaters a day, so they do have the capacity to accept this order if they wish. 1. lIST 2 QUALITATIVE FACTORS THAT SHOULD BE CONSIDERED BY THE RINK BEFORE ACCEPTING THE SPECIAL ORDER. 2. WHAT ARE THE TOTAL RELEVANT COSTS OF ACCEPTING THE SPECIAL ORDER? 3. FROM A QUANTITATIVE BASIS, SHOULD THEY ACCEPT THE SPECIAL ORDER? BY WHAT AMOUNT WILL THE RINK''''''S NET INCOME INCREASE OR DEREASE IF THEY ACCEPT THE SPECIAL ORDER?

Related Discussions:- A local skating rink charges each person $5 to skat

E-scm, benefits of e-scm

benefits of e-scm

Managing commercial relationship for the small-scale company, Question: ...

Question: What are the challenges that suppliers face when managing commercial relationship for the small-scale company? Check customers capable of adding value Check cus

Warehousing, why warehousing would considered as a necessary evil

why warehousing would considered as a necessary evil

Beoing, developing a brief synopsis outlining the business and capitalisati...

developing a brief synopsis outlining the business and capitalisation strategies of Boeing and Airbus

Total landed cost analysis, How to integrated the cost elements such as adm...

How to integrated the cost elements such as administrative overheads and risks in total landed cost model? Seems these two cost elements are hard to quantify.

Logistics, Discuss the logistics strategies

Discuss the logistics strategies

Management benefits, Benefits Outsourcing would eliminate the time ...

Benefits Outsourcing would eliminate the time constraints and the developmental process would take place at a faster pace Boeing can remain abreast of the latest trends

Pull and push strategy, how to make the introduction topic interesting abou...

how to make the introduction topic interesting about the difference between pull and push logics, advantage and disadvantage

Explain the sugar supply chain, Explain the sugar supply chain. Sugar I...

Explain the sugar supply chain. Sugar Industry in India - brief outline , Types of sugar - Granulated sugar, Regular sugar, Fruit sugar, Superfine and bar sugar, Coarse sugar ;

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd