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BUSI 1002 (6)

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Carleton University
BUSI 1002
Jacques Maurice

1. SPEC OVariable production cost: xxxx Incremental FC xxxx Commission xxxx CM lost xxxx Advantage to special order xxxx 1. Make or Buy Cost to buy: $xxxx Cost to make: VC: xxxx FC: avoidable xxxx OPP Cost xxxx (xxxx) Advantage to buying: $xxxx What volume it become indifferent: Cost to buy = Cost to make 2. Add or Drop (find CM) Loss CM on product C (xxxx) Avoidable FC xxxx Incremental CM of Product A sales rise: xxxx Product B sales fall: (xxxx) xxxx Incremental Income of dropping is: $xxxx 3. Scarce Resources X Y Z CM 100 100 100 DM or DL/hr 1 5 100 CM/(DM or DL hr) 100 20 1 Rank 1 2 3 Market Demand 100 200 3000 0 0 Rank Amnt of DM or DL lft 4000 1 Mrkt d x DL/DM = 1000 (4000-1000) = 3000 2 3 4. Sell or Process Further If processed further: $xxxx If sold before processing: (xxxx) xxxx Cost of further processing: (xxxx) Incremental income: $xxxx 1. Cash Collection Schedule Jan Feb Mar T N: # x %3 Amount 3 = D: # x %2 | %3 Amount 2 Amount 3 = J: # x %1 | %2|%3 Amount 1 Amount 2 Amount 3
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