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

Cost accounting, As What is the major value of the weighted cost of capital...

As What is the major value of the weighted cost of capital calculation for the firm?k question #Minimum 100 words accepted#

Correlation coefficiant, the variance of stock a is .004,the variance of ma...

the variance of stock a is .004,the variance of market is .007,co variance between two is .0026 calculate correlation coefficient

Benefits of building a collar strategy, a)    Put options on Chicken King w...

a)    Put options on Chicken King with a strike price of $42.50 and 2 months to maturity are properly priced to sell for $3.68 (no bid-ask spread).  Call options with the same stri

What do you understand by the term hedging effectiveness, Question: (a)...

Question: (a) You have just been recruited as risk analyst at the Air Mauritius Limited. Your risk manager is trapped between diverging expectations. He is not sure whether oil

Accumulative swing index - asi, It is an indicator used by traders to judge...

It is an indicator used by traders to judge a security's long-term trend by comparing bars which comprise its closing,   opening, high and low prices during a specific period of ti

Show the different functions of a bill of lading, CAC Co Ltd is engaged in ...

CAC Co Ltd is engaged in the import and distribution of air conditioners from China. The business has been in existence since year 2000 and the exporter has been trading 50% on do

Priori forecasting, Chang and Fyffe (1971) assume that a ?rm has a ''long-r...

Chang and Fyffe (1971) assume that a ?rm has a ''long-run sales history of individual seasonal-style-goods SKUs or groups of such SKUs''. They propose to estimate demand by using r

Determine the lease rate, Robert Shapprio Leasing CO (40% tax rate) I deter...

Robert Shapprio Leasing CO (40% tax rate) I determining leae rate for a number of equipment . it is allowed to use the following accelerated depreciation rate 3 years: 25%   38%

Maturity of Bond, Cavo Corp. has 9 percent coupon bonds making annual payme...

Cavo Corp. has 9 percent coupon bonds making annual payments with a YTM of 8.3 percent. The current yield on these bonds is 8.65 percent. How many years do these bonds have left

Investing, Suppose the dividends for the Seger Corporation over the past si...

Suppose the dividends for the Seger Corporation over the past six years were $1.36, $1.44, $1.53, $1.61, $1.71, and $1.76, respectively. Compute the expected share price at the end

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