Based on these data, the operation of the company is analyzed About 1500 words)
FT is about the same as Orlando factory, Lake City is about the same as Lexington factory, they share all the data in the income statement
Orlando and expanded Orlando are discussed separately. Expanded Orlando in the report refers to the capacity, variable cost and fixed cost of the newly expanded plant
Lexington and expanded Lexington are the same
Let's set decision variables: a can't open a factory (use binary), 0 is to close a factory, 1 is to open a factory, and B is to match the market share of each factory
1 unit = 1 product Average income statement Net sales 100.0% Material 45.8% Labor 7.0% Overhead Variable 7.5% Fixed 4.0% Cost of sales 64.3% Gross margin 35.796 Delivery Variable 2.7% Fixed 1.0% Selling&Ad Variable 12.0% Fixed 4.0% Plant admin 3.9% Operating expense 23.6% Operating margin 12.1% Corporate charge 5.8% Income before tax 6.3% Taxes 2.8% Net income 3.5% Income statement for the first seven months of the southern region Orlando Atlanta Lexington Net sales 11788000 8075000 7444000 Total pieces 125952 84177 78677 Net sales 100.0% 100.0% 100.0% Material 46.5% 45.4% 43.9% Labor 7.1% 6.2% 6.1% Overhead 9.1% 10.2% 7.4% COGS 62.79 61.8% 57.4% Gross margin 37.39 38.2% 42.6% Delivery 4.6% 4.1% 3.2% Sell&Ad 18.6% 17.8% 15.4% Admin 3.5% 3.4% 3.8% Operation expense 26.7% 25.3% 22.3% Operating margin 10.6% 13.0% 20.3% Selling price 93.59 95.93 94.61 Variable cost per produ 83.67 83.55 75.50 Contribution per prody 9.92 12.37 19.11 FT 11788000 125952 100.0% 46.5% 7.1% 9.1% 62.7% 37.3% 4.6% 18.6% 3.5% 26.7% 10.6% 93.59 83.67 9.92 Lake City 7444000 78677 100.0% 43.9% 6.1% 7.4% 57.4% 42.6% 3.2% 15.4% 3.8% 22.3% 20.3% 94.61 75.50 19.11 Annual income statement of the southern region Orlando Atlanta Net sales 20208000 13842857 Total pieces 215918 144303 Fixed overhead 808320 553714 Fixed delivery 202080 138429 Fixed selling&ad 808320 553714 Fixed plant admin 788112 539871 Total fixed cost 2606832 1785729 Lexington 12761143 134875 510446 127611 510446 497685 1646187 FT 20208000 215918 808320 202080 808320 788112 2606832 Lake City 12761143 134875 510446 127611 510446 497685 1646187 Transporation fee/unit Orlando Atlanta 5.72 Birmington 6.45 Charleston 5.53 Columbia 6.18 Columbus 56.85 Green 7.89 K 8.29 Miami 4.34 Orlando 0.66 Ral 8.82 S 20.21 Tampa 1.38 Atlanta 0.66 1.97 3.8 2.63 14.62 4.61 2.54 8.62 5.72 4.89 15.16 5.92 Lexington 4.61 6.58 3.62 2.63 74.71 0.66 2.89 12.24 7.89 1.97 28.87 9.47 FT 8.62 9.34 8.42 9.08 92.58 10.79 11.18 1.97 2.89 11.71 36.09 1.58 Lake City 3.36 4.08 3.16 3.82 27.61 5.53 5.92 6.71 2.37 6.45 7.22 3.09 Demand 89179 17750 8093 24604 5339 77640 19316 109902 29173 37900 6493 86799 Expansion cost Unit revenue Unit variable cost Unit contribution Total fixed cost Orlando 93.59 83.67 9.92 2606832 Atlanta 95.93 83.55 12.37 1785729 Lexington 94.61 75.50 19.11 1646187 Exp Orlando Exp Lexington FT Lake City 105.59 106.61 93.59 94.61 85.67 76.50 83.67 75.50 19.92 30.11 9.92 19.11 3006832 1896187 2606832 1646187 tebe unit revenue=900000/75000 X 600000/50000=12 capacity Orlando Atlanta Lexington Exp Orlando Exp Lexington FT 62500 250000 4000000 Lake City 62500 250000 3500000 225000 Min capacity Max capacity Investment of buying Revenue of selling 175000 187500 300000 900000 237500 600000 3250000 4000000 2000000 Decision variables |Max capacity Investment of buying Revenue of selling FT Orlando 0 Atlanta 0 Lexington 0 Exp Orlando 1 Exp Lexington 1 Lake City 1 Open or not 1 Atlanta 0 0 0 0 0 Contrain 1: Supply and demand Orlando Atlanta 0 Birmington 0 Charleston 0 Columbia 0 Columbus 0 Green 0 K 0 Miami 0 Orlando 0 Ral 0 S 0 Tampa 0 Total capacity 0 Relation
