Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Amore Frozen Foods Should Amore return the fill target from 8.44oz back to 8.22oz Input parameters Prices/Cost per dozen Normal price Underweight price Fill Target
Amore Frozen Foods Should Amore return the fill target from 8.44oz back to 8.22oz Input parameters Prices/Cost per dozen Normal price Underweight price Fill Target Cost 4.5 3.6 total cost 8.22 1.77 1.18 2.95 std dev sample size std dev (sample of 5) 0.22 5 0.1 Ingredients Packaging/labor annual production annual demand (thrift) Calculations 8.44 1.82 1.18 3 720000 3120 Profit per year Fill Target % Underweight 8.22 0.012674 8.44 0.000004 Revenue # of normal batches # of rejects # of sale (thrift store) revenue $ 710875 719997 9125 3 3120 3 3,210,169.00 $ 3,239,997.00 cost: $ 2,125,843.00 $ 2,160,000.00 marginal profit $ 1,084,327.00 $ 1,079,997.00 Analisys: Decision: based on the difference in marginal profit, it would be good to move back to 8.22oz. Even though the savings is not much. It makes sense to follow trational practice. Hi, if you ever need any assistance with your work you can get me through my email emmanueltk379@gmail.com and I will assist you. *Do not reply to this thread, just reply to the email. Thanks and looking forward to working directly with you. Hi, if you ever need any assistance with your work you can get me through my email emmanueltk379@gmail.com and I will assist you. *Do not reply to this thread, just reply to the email. Thanks and looking forward to working directly with you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started