Calculate the optimum profit, Corporate Finance

Assignment Help:

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.


Related Discussions:- Calculate the optimum profit

Are there safety and soundness implications of mergers?, Q: Are there safet...

Q: Are there safety and soundness implications of mergers? A: No. All mergers require regulatory approval and are subject to intense examination by regulators. If anything, the

Bond ratings, why do investors pay attention to bond ratings?

why do investors pay attention to bond ratings?

Report of a questionable, Please l have an assignment and l want to send th...

Please l have an assignment and l want to send the document to you so that you will send it to the Tutors on Chegg to help me with it. Can l send it please?

Irr calculation, how do you find ldr and HDR for ire?

how do you find ldr and HDR for ire?

Cost of equity, Data:  RF = 4%      Market Risk Premium = 6% GeKay Inc. ...

Data:  RF = 4%      Market Risk Premium = 6% GeKay Inc. is an all-equity firmwith an equity beta of 0.4 and yearly EBIT of $1,000,000 that is expected to continue "forever" (in

Discuss the importance of a trade unions recognition, "The Code of Practice...

"The Code of Practice set out in the fourth schedule to the Employment Relations Act shall- (a) provide practical guidance for the promotion of good employment relations". (Se

Efficiency, differentiate between pricing efficiency and allocative efficie...

differentiate between pricing efficiency and allocative efficiency

IRR & WACC, I have been given 3 different types of projects. They state th...

I have been given 3 different types of projects. They state the IRR and how much the project will add. The question goes on to give a WACC with break points. The question wants

Fundamentals of Corporate Finance 2nd edition, The higher the rate of inter...

The higher the rate of interest the more likely you will elect to invest your funds and forego current consumption. Is this statement true or false?

P/e ratio, P/E Ratio: When it comes to valuing stocks, the price/earnings ...

P/E Ratio: When it comes to valuing stocks, the price/earnings ratio is one of the highly oldest and most frequently used metrics. It is more than a measure of a company's past pe

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