英语论文网

it statement
D&P Company
Pounds in thousand
OPERATING REVENUES
Type 1 3,500
Type 2 1,920
Type 3 1,320
Other 0
Total operating revenue 6,740

OPERATING EXPENSE
Cost of sales 3,100
Fixed cost 800
Total operating expense 3,900
Operating income 2,840

OTHER INCOME(EXPENSE) 0
Net income 2,840

Operating revenue calculation
Type Price (￡) Calculation Total amount in thousand
1 350 350*10,000 3,500
2 240 240*8,000 1,920
3 220 220*6,000 1,320
Total revenue 6,740

Expense (in thousands) calculation
Type Labor cost Material cost Total amount Fixed cost
1 560 980 1,540 800
2 384 576 960
3 240 360 600
Total revenue 3,900

Thus, net income is 2,840,000 based on the proposed demand.

3. Subcontracted production
For the unit profit, we have:
Type Total Profit (￡) Amount Unit profit (￡)
1 1,960,000 10,000 196
2 960,000 8,000 120
3 720,000 6,000 120

For the type 1, since it has the largest profit per unit, we should meet its demand first. For type 2 and type 3, since the profits per unit are same, type 3 should be met at priority due to the less labor hour per unit.
Actual production under labor time limitation
Type Actual production time Actual amount
1 70,000 10,000
2 6,000 1,000
3 30,000 6,000

From the chart above, we find that type 2 is least profitable product, so it would be subcontracted and the amount is 7,000 (8,000-1,000)

According to the information that the Chinese firm provided, we know the price of Type 3 is 160. The unit profit is 70 (240-170) Therefore, the profit is:
Type Unit profit (￡) Amount Calculation Total profit 
3 70 7,000 70*7,000 `490,000

To conclude, Type 2 would be subcontracted, 7,000 would be produced by a Chinese firm and D&P would gain an extra profit ￡ 490,000.

Part E
1. Average number calculation
Since overheads are semi-variable though the data isn’t completely clear, the amount in last for week and the other overheads are regressed, then, we have: variable cost is 56.14 and the fixed cost is 1393.27

Week Occupancy Amount
3 84 126
4 75 112.5
5 61 91.5
6 57 85.5

Total cost calculation
Type Amount
Staff salaries 2,000
Rates 750
Depreciation 900
Heating 600
Other overhead 1,393.27
Total fixed cost 4,250
Direct cost 100*N
Overhead 56.14*N
Total cost 5,643.27+156.14*N

Since the average price per stay at the hotel is ￡218 per week, the average number (N) of guests needed each week to break even is 5,643.27+156.14*N =218*N, i.e. N=91.23
Thus, there are 92 guest coming into the hotel so that we could meet the break-even point.
2. Weekly Profit/Loss Calculation
a) If the occupancy is 40%, it means 40%*150=60 rooms needed. Therefore, the profit/cost is:
Type Amount
Total fixed cost 5,643.27
Total variable cost 156.14*60=9,368.4
Total cost 15,011.67
Revenue 13080
Profit (revenue – total cost) (1931.67)

With 40% occupancy, the loss is 1931.67.

b) If the occupancy 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。