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Home work 4

# Home work 4 - \f Homework ChaDter 10#4 Due Use the...

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\f Homework #4- Due 11/06/07 ChaDter 10 Use the following information for questions 1-3. Your company has decided to analyze whether to continue managing and operating the cafeteria, or whether to outsource it to CafeteriaCo. CafeteriaCo will charge you an annual management fee of \$50,000 plus charge you \$6 per meal served. Your internal costs to operate the cafeteria on a yearly basis are listed below: \$ 150,000 \$ 75,000 \$ 200,000 \$ 50,000 \$ 100,000 \$ 200,000 \$ 775,000 Operating Expenses Direct Labor Benefits Food Indirect Labor Equipment Depreciation Overhead Total Cost 1. If you expect to serve 100,000 meals next year, would you insource or outsource (show your work)? (IJ.fc. .{ef;t. (0 \$ b/~~0/( k vs +0 " IA.~.?VrL~ O v.f ~0\.1 r ( e- 2. If you expect to serve 150,000 meals next year, would you insource or outsource (show your work)? 1" 'I IY\~lli k + <;0 00 O At.4.(~ = L(;l-k~rl'tt(o : I +(;J vs ,~ .\$0 (" (-e. .. 11 s o v r (..e.- 3. Would operating a cafeteria typically be considered a "core competency" for a company? r"tof ~ t:Of~

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Use the following infonnation for question 4: Your company is purchasing 1000 pounds of steel from both Supplier 1 and Supplier 2 this year. Each late delivery costs your company \$100 and each pound of defective material costs your company \$300. Basic information on the two suppliers is provided
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Home work 4 - \f Homework ChaDter 10#4 Due Use the...

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