Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Requirements 1. Calculate the amount and cost of unuged administrative capacity at the beginning of 2020 , based on the actual number of customers Rambo

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Requirements 1. Calculate the amount and cost of unuged administrative capacity at the beginning of 2020 , based on the actual number of customers Rambo served in 2020. 2. Suppose Rambo can only add or reduce administrative capacity in increments of 250 customers. What is the maximum amount of costs that Rambo can save in 2020 by downsizing administrative capacity? 3. What factors, other than cost, should Rambo consider before it downsizes administrative capacity? Data table Administrative costs depend on the number of customers Rambo has created capacity to support, not on the actual number of customers served. Rambo had 4,300 customers in 2019 and 4,200 customers in 2020. Rambo \& Sons buys T-shirts in bulk, applies its own trendselting silk-screen designs, and then sells the T-shirts to a number of retailers. Rambo wants to be know for its trendselting designs, and it wants every teenager to be seen in a distinctive Rambo T-shirt. Rambo presents the following data for its first two years of operations, 2019 and 2020. Requirement 1. Calculate the amount and cost of unused administrative capacity at the beginning of 2020, based on the actual number of customers Rambo served in 2020 . First solect the formula, then enter the appropriate amounts to calculate cost of unused administrative capacity at the beginning of 2020. Requirement 2. Suppose Rambo can only add or reduce administrative capacity in increments of 250 customers. What is the maximum amount of costs that Rambo can save in 2020 by downsizing administrative capacity? Begin by solecting the formida, then enter the appropriate amounts to calculate the maximum cost the company can save. = Maximum costs saved by downsizing. = Requirement 3. What factors, other than cost, should Rambo consider before it downsizes administrative capacity? Select the two staternents that would explain what other factors Rambd' should consider before it downsizes administrative capacity. Rambo thould realze the maket feedback often provided by oustomer sorvice staff is probably key to Rambo's cutting-odge fashion strategy; some of this may be lost it administrative capacity is cut tack. Rambo should consider increasing productivily to account for the additional administrative costs because downsizing can adversely atfoct employeo moralo and the culture of a company. Rambo should understand that downsizing in the short-term can hurt employee morabe but in the long-term it will increase employee productivily. Rambo should consider whether sules increases in the future would lead to a greater demand for and utilization of capacily. As new customers are drawn to Rambo's distinctive products, customer service may be the key to now customer retention and further growth. Requirements 1. Calculate the amount and cost of unuged administrative capacity at the beginning of 2020 , based on the actual number of customers Rambo served in 2020. 2. Suppose Rambo can only add or reduce administrative capacity in increments of 250 customers. What is the maximum amount of costs that Rambo can save in 2020 by downsizing administrative capacity? 3. What factors, other than cost, should Rambo consider before it downsizes administrative capacity? Data table Administrative costs depend on the number of customers Rambo has created capacity to support, not on the actual number of customers served. Rambo had 4,300 customers in 2019 and 4,200 customers in 2020. Rambo \& Sons buys T-shirts in bulk, applies its own trendselting silk-screen designs, and then sells the T-shirts to a number of retailers. Rambo wants to be know for its trendselting designs, and it wants every teenager to be seen in a distinctive Rambo T-shirt. Rambo presents the following data for its first two years of operations, 2019 and 2020. Requirement 1. Calculate the amount and cost of unused administrative capacity at the beginning of 2020, based on the actual number of customers Rambo served in 2020 . First solect the formula, then enter the appropriate amounts to calculate cost of unused administrative capacity at the beginning of 2020. Requirement 2. Suppose Rambo can only add or reduce administrative capacity in increments of 250 customers. What is the maximum amount of costs that Rambo can save in 2020 by downsizing administrative capacity? Begin by solecting the formida, then enter the appropriate amounts to calculate the maximum cost the company can save. = Maximum costs saved by downsizing. = Requirement 3. What factors, other than cost, should Rambo consider before it downsizes administrative capacity? Select the two staternents that would explain what other factors Rambd' should consider before it downsizes administrative capacity. Rambo thould realze the maket feedback often provided by oustomer sorvice staff is probably key to Rambo's cutting-odge fashion strategy; some of this may be lost it administrative capacity is cut tack. Rambo should consider increasing productivily to account for the additional administrative costs because downsizing can adversely atfoct employeo moralo and the culture of a company. Rambo should understand that downsizing in the short-term can hurt employee morabe but in the long-term it will increase employee productivily. Rambo should consider whether sules increases in the future would lead to a greater demand for and utilization of capacily. As new customers are drawn to Rambo's distinctive products, customer service may be the key to now customer retention and further growth

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities

Authors: James Smith, William Raabe, David Maloney, James Young

18th Edition

9781285438290

Students also viewed these Accounting questions