Golden Chicken

To solve the different scenarios for the flourishing Chicken Company we moldiness under jut first what is the underway hit and operations of the company, and to run across this we prise the structure of the impertinent profits that is as follows: win=Revenue-Cost Revenues: The current flow of revenues derives from the sell of orchis to the wholesalers Existing select is Q= metre units/day, and the current legal injury is $6/case From this we generate the next revenue: Revenue(R)=Price(P) * Quantity(Q) R=$6*1,000= $6,000.00 Costs: The be that Golden chicken company has are related to exaltation and unsanded stuff and nonsenses. Raw materials: the cost per case up to 1,000 is $3.00 and as this point, want is fixed, we will not incur in additional costs to bring eggs from outside suppliers. RMc= 1000 * $3.00 = $3,000.00 revelation: An apprehension with a transportation company allows us to distribute our products, we underst ructure transport up to 50 cases per truck at a cost of $50.00 per route. To transport the 1,000 eggs that we contribute as current engage we will require 1,000 units/ 50 units/truck = 20 trucks Trc= 20 * $50.00 = $1,000.00 We take hold the total cost by adding the Raw material and transportation cost and we obtain: TC= $3,000.00 + $1,000.00 = $4,000.

00 Profit: The initial profit is: P=R-C = $6,000.00 - $4,000.00 = $2,000.00 circumstance A The wholesale price of a case of eggs increase to $6.60 To evaluate this scenario we have the current profit to evaluate the new break even point , and the profit to compare is: P1= $2,00! 0.00 For this scenario we stand a decrease in the demand as the price increases by 10%, therefore we would expect no motif to buy additional eggs. Therefore we bet the new measuring stick to be sold to obtain P1 P1= (Price*Quantity) - Transport cost new raw material cost new $2,000 .00 = $6.6 * Qn (Qn/50)*$50 Qn*$3.00 $2,000.00 = $6.6Qn Qn - $3 Qn $2,000.00 = $2.6 Qn Qn = 770.00...If you want to get a full essay, coif it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay