Production level problem, Marketing Management

Assignment Help:

The popular Chiltern hotel operates a restaurant which makes its own food on the premises. The costs for the current production level of 500 meals are:

Cost/meal (Rs)
Materials/Inputs        25.00
Labour                      12.50
Variable overheads  17.50
Fixed overheads       35.00
Total costs                90.00

Ready-made meals could be bought in for Rs 77.50 per meal and, if so, the production capacity utilized at present would be unused.

Required:

Consider that there are no overriding technical considerations, should the restaurant order ready-made meals or makes its own food?


Related Discussions:- Production level problem

Growth in media and increase in industrialization by ads, Q. Growth in medi...

Q. Growth in media and Increase in industrialization by ads? Growth in media: - Earlier extremely less media sources were available to advertisers for communicating with targe

Show the marketing implications, Problem 1: Assume that you are the man...

Problem 1: Assume that you are the manager of front-line customer-service employees in a tourism/hospitality organisation. From this perspective, elaborate on the strategies t

Environmental scanning, Environmental scanning: Future is unpredicta...

Environmental scanning: Future is unpredictable, but the marketer can obtain appraisals of what is most probable. To monitor changes in the marketing environment effectively

Differentiate between horizontal and vertical conflicts, Question: (a) ...

Question: (a) Members of the marketing channel perform eight key functions. Describe these functions. (b) Differentiate between horizontal conflicts and vertical conflict

How is marketing play an important role in business, How is marketing play ...

How is marketing play an important role in successfully running a business? During this period of globalization, all factors like economic crisis, dissimilarities in standards

Illustrate an example of industrial goods, Illustrate an example of industr...

Illustrate an example of industrial goods Same product may be classified as consumer goods and industrial goods depending upon its end use.  Take for illustration the case of c

What is maturity stage of product life cycle, What is Maturity Stage of Pro...

What is Maturity Stage of Product Life Cycle? Maturity Stage: A period of a slowdown in sales growth as productions achieved acceptance by most potential buyers. Profits s

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