Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the bart soda company is owned by the homer simpson megaplex The Bart Soda Company is owned by the Homer Simpson Megaplex. Bart has the

image text in transcribed
the bart soda company is owned by the homer simpson megaplex
image text in transcribed

The Bart Soda Company is owned by the Homer Simpson Megaplex. Bart has the following information: production 100,000 gallons per month variable costs $0.80 per gallon Currently making and selling 75000 gallons to Sloppy Joe's restaurant for $3.00 per gallon Situation 1: Situation 2: The Homer Simpson Megaplex has just acquired the Messy Sue's Diner and they use 20,000 gallons of soda every month Messy Sue's Diner had been buying soda from Moe's Tavern for $2.25 per gallon Since Homer's sister Jessica is unavailable due to being out in space, He has asked your advice. a) Should Messy Sue's continue to buy soda from Moe's Tavern or from Bart? b) If from Bart what price should the transfer be? (Homer wants to maximize his profits) c) how should Homer evaluate Bart and Messy Sue? The Homer Simpson Megaplex has just acquired the Messy Sue's Diner and they use 35,000 gallons of Soda every month Messy Sue's Diner had been buying soda from Moe's Tavern for $2.25 per gallon Since Homer's sister Jessica is unavailable due to being out in space, He has asked your advice. a) Should Messy Sue's continue to buy soda from Moe's Tavern or from Bart? b) If from Bart what price should the transfer be? (Homer wants to maximize his profits) c) how should Homer evaluate Bart and Messy Sue? Bonus: No partial credit Using the information from situation 2: Because of shipping costs; Moe's Tavern will ONLY sell 35000 gallons (or more) to Messy Sue's So Homer (you) have 2 choices: buy all 35000 from Moe or buy nothing from Moe and reduce pur sales to Sloppy Joe's to satisfy Messy Sue's order What is the impact on profit if you choose to supply Messy Sue's instead if using Moe?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

9th Edition

125972266X, 9781259722660

More Books

Students also viewed these Accounting questions

Question

How do certain genetic conditions affect motor control?

Answered: 1 week ago

Question

_____ 6. the top trading partner of the United States

Answered: 1 week ago

Question

_____ 9. accepted norms and ways of doing business

Answered: 1 week ago