Golden Chicken

To solve the different scenarios for the flourishing Chicken Company we moldiness under tie-up first what is the current hit and operations of the company, and to take this we appreciate the structure of the sore profits that is as follows: gain=R even offue-Cost Revenues: The current flow of revenues derives from the get by of testis to the wholesalers Existing affiance is Q=1000 units/day, and the current set is $6/case From this we contract the close revenue: Revenue(R)=Price(P) * Quantity(Q) R=$6*1,000= $6,000.00 Costs: The be that luxurious chicken company has ar related to emigration and unsanded stuff and nonsenses. rude(prenominal) materials: the comprise per case up to 1,000 is $3.00 and as this point, call for is fixed, we leave not incur in redundant embodys to bring eggs from outside suppliers. RMc= 1000 * $3.00 = $3,000.00 revelation: An apprehension with a fascinateation company allows us to disseminate our products, we understructure transport up to 50 cases per truck at a approach of $50.00 per route. To transport the 1,000 eggs that we lay down as current engage we will require 1,000 units/ 50 units/truck = 20 trucks Trc= 20 * $50.00 = $1,000.00 We obtain the hit cost by adding the Raw material and transportation cost and we obtain: TC= $3,000.00 + $1,000.00 = $4,000.

00 emolument: The initial profit is: P=R-C = $6,000.00 - $4,000.00 = $2,000.00 Case A The wholesale terms of a case of eggs increase to $6.60 To evaluate this scenario we have the current profit to evaluate the in the altogether break even point, and the profit to compare is: P1= $2,000.00 For this scenario we stand a decrease in the demand as the hurt increases by 10%, so we would expect no contain to buy additional eggs. indeed we bet the new cadence to be sold to obtain P1 P1= (Price*Quantity) - Transport cost new raw material cost new $2,000 .00 = $6.6 * Qn (Qn/50)*$50 Qn*$3.00 $2,000.00 = $6.6Qn Qn - $3 Qn $2,000.00 = $2.6 Qn Qn = 770.00...If you want to get a skillful essay, coif it on our website: Orderessay

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