Tine Company Makes Carpets

question 29

Multiple Choice

Tine Company makes carpets. A customer wants to place a special order for 1,000 carpets in navy blue with the company logo woven in the middle, to be priced at $30 each. Normally, Tine would charge $60 per carpet for this type of order. Tine figures that yarn and backing will cost $12 per carpet, variable overhead (machining, electricity) is $5 per carpet, direct labour is $10 per carpet, and one setup will be required at $800 per setup. The setup charge costs are 100% labour. Currently, the workers needed to set up and make the carpets are working at Tine. Their wages will be paid whether or not the special order is accepted. Tine's policy is to avoid layoffs to the extent possible.
-Refer to the Figure.Which of the following is NOT relevant to the special-order decision?

• A)the cost of yarn and backing
• B)the direct labour cost
• C)the machining and electricity cost
• D)the $30 price

Understand different distribution network designs and their utility.

Identify the effects of various distribution networks on customer service metrics.

Recognize the role and value of distributors in supply chain performance.

Analyze the cost and service factor performance characteristics of different distribution models.

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Definitions:

Corresponding Outside

Engaging or communicating with external parties that are relevant to a particular context or situation.

Formatting Decisions

Formatting decisions are choices made regarding the arrangement, style, and appearance of text and documents.

Developing Writing

The process of improving writing skills through practice, study, and feedback.

Data Reporting

The process of collecting, analyzing, and presenting data to highlight trends, performance, or results, often used in business and research.