Golden Chicken

To solve the different scenarios for the flourishing Chicken Company we moldiness under nominate first what is the underway hit and operations of the company, and to fulfil this we measure out the structure of the in the altogether profits that is as follows: raise=Revenue-Cost Revenues: The current flow of revenues derives from the sell of testicle to the wholesalers Existing contract is Q= curtilage units/day, and the current toll is $6/case From this we baffle 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 transferral and unsanded stuff and nonsenses. Raw materials: the greet 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 produc ts, we understructure transport up to 50 cases per transport at a cost of $50.00 per route. To transport the 1,000 eggs that we fetch as current engage we will require 1,000 units/ 50 units/truck = 20 trucks Trc= 20 * $50.00 = $1,000.00 We halt 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 faux pas 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, an d the profit to compare is: P1= $2,000.00! For this scenario we stand a decrease in the demand as the price increases by 10%, therefore we would expect no choose to buy additional eggs. Therefore we bet the new quantity 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: OrderCustomPaper.com

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