A load of parts valued at $77,000 needs to be shipped from Toronto to Vancouver. They could be shipped by truck, taking 21 days at a cost of $1,500, or by rail, taking 10 days at a cost of $2,500. The annual holding cost rate for this type of item has been estimated at 14%.

a. Would you recommend shipping by truck or by rail?

b. What is the holding cost for this scenario?

c. How would your recommendation differ if holding costs were 43% instead of 14%?Explain.

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Answer Place your final answer in the box.

a. Most economical option and why?
b. Hold Cost?
c. Recommendation with higher Holding Cost. Explain.

Show your work here (mandatory):

North Shore Glass Company is struggling with profitability and need some help determining how much sales they must produce each month to be profitable. Their fixed cost for all products produced amounts to $6000 per month.

a. Determine the Break Even Point in Sales per month.

b. If the fixed costs for the Wine Glass increases by 16000 dollars per year and the fixed costs for the Water Glass decreases by 4000 dollars per year what is the change to the Break Even Point for sales per month?Explain your answer.

c. If fixed cost does not change (at $6000/Month) but the sales volume for Vases increases to 30,000, what is the new Break Even Point in Sales per month?Explain.

	Price	Cost to Manufacture	Forecasted Annual Sales
Wine Glass	11	5	17000
Water Glass	4	2	16000
Vase	5	3	15000

Answer Place your final answer in the box.

a. Break Even Point in Sales per month.
b. Change to Break Even Point for sales per month? Explain?
c. New Break Even Point in Sales per month with increased Vase sales? Explain.

Show your work here (mandatory):

You are a consultant and have been asked to support a business project to invest in a new process in a mushroom processing plant. You are asked to review two options. One process, The Smash Process, has fixed cost of $108,000. This process cost $13.00 per pound of refinery output. The anticipated revenue of the process is determined to be $30 per pound regardless of process. The second process, The Squish Process, has the same expected benefits however is costs $15 per pound to run and has a fixed cost of $88,000.

a. If the estimated output is 6000 units, what recommendation would you make and why?

b. An enhancement to the Smash process has become available improving its profitability. What recommendation do you make ('Squish' vs 'Enhanced Smash') if this increases Smash revenue by 10% per pound? Explain.

Answer Place your final answer in the box.

a. Recommended option. Why?
b. Recommendation re: Smash Alternative Process. Explain.

Show your work here (mandatory):

The North Shore Glass Company has a volume of 3,100,000 units per year. They are presently comparing two machines for purchase to support production. Both machines provide equal quality and are equally reliable. Machine A costs $37,000 per year plus a variable cost of $0.075 per item. Machine B costs $38,000 per year plus a variable cost of $0.065 per item.

a. If cost and volume are the only considerations, which machine should they buy and why?

b. If the volume of units changed from 3,100,000 could this change your recommendation? If so, what number of units per year would change your response? Explain?

Answer Place your final answer in the box.

a. Which machine and why?
b. New recommendation/number of units? Explain?

Show your work here (mandatory):