Answer Happy

Revenue: Revenue per week = number on rent x rental per week = 3600 x 40 + 2400 x 30 + 720 x 25 = 234000 Costs: Cost per week = shipping cost + receiving cost (shipping) + pre-configuration cost + repair cost + depreciation = Shipping cost per week = 1260 x 25 = 31500 Receiving cost per week = 1260 x 25 = 31500 Pre-configuration cost per week = 2999 Repair cost per week = 76500 Depreciation per week (total units x depreciation/unit/week) = 116348 Profit per week = Revenue - Cost = -24847 258847
Revenue: Revenue per week = number on rent x rental per week = 2400 x 40 + 3200 x 30 + 1440 x 25 = 228000 Costs: = Cost per week = shipping cost + receiving cost (shipping) + pre-configuration cost + repair cost + depreciation : Shipping cost per week = 1120 x 25 = 28000 Receiving cost per week = 1120 x 25 = 28000 Pre-configuration cost per week = 2666 Repair cost week per = 68100 Depreciation per week (total units x depreciation/unit/week) = 103423 Profit per week = Revenue - Cost = -2189 230189
Revenue: Revenue per week = number on rent x rental per week = 1200 x 40 + 4000 x 30 + 1800 x 25: = 213000 Costs: Cost per week = shipping cost + receiving cost (shipping) + pre-configuration cost + repair cost + depreciation = Shipping cost per week = 950 x 25 = 23750 Receiving cost per week = 950 x 25 = 23750 Pre-configuration cost per week = 2440 Repair cost per week = 62268.75 Depreciation per week (total units x depreciation/unit/week) = 94648 Profit per week = Revenue - Cost = 6144 206856
Based on the above analysis, give a comprehensive summary of your findings, interpretations, and insights you obtained by addressing: Which rental services are profitable out of three options? Option 3 is the most profitable Why it makes more sense to go after a bigger piece of the long-term market? What is the currently used primary measure for inventory performance? How management can reduce the repair cost given a key cost is in repair where the main drivers are throughput through repair as well as the cos One action that management can take is to work on reducing the time spent in each buffer. For example, what would be change in profit or loss in the case of the short-term rentals (Table 3) if the time spent waiting for parts to be order were eliminated with repair personnel directly placing orders? Hint: determine the change in inventory of status 41 and estimate corresponding change in depreciation cost. Currently, 15% of status 24 units had turned out to be defective. What would be the impact on the profit if all returned equipment is correctly cla Hint: consider the change in throughput passing through pre-configuration and corresponding change in depreciation cost.