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1. 2. 3. Each day, a FedEx competitor processes approximately 65,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified
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Each day, a FedEx competitor processes approximately 65,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following number of errors during a 5-day week (see the "FedEx: Measuring Service Performance" box). These values are hypothetical and do not reflect any real company's actual performance. Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places. Service Quality Indicator (SQI): % hamburger factory produces 70,000 hamburgers each week. The equipment used costs $9,000 and will remain productive for three years. The abor cost per year is $13,000. a. What is the productivity measure of "units of output per dollar of input" averaged over the three-year period? Assume that there are 52 weeks per year. Round your answer to one decimal place. Productivity: hamburgers/dollar b. We have the option of $13,000 equipment, with an operating life of four years. It would reduce labor costs to $11,000 per year. Should we consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to one decimal place. For the expensive machine, productivity is hamburgers/dollar input. Because the productivity of the expensive machine is , it would be a investment based on this single criterion. Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.32 , the purchase price is $68,000, the repurchase frequency is every three years, and the customer defection rate is 20 percent. Do not round intermediate calculations. Round your answer to the nearest dollarStep by Step Solution
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