Tasty Beverage Co. produces soft drinks, specializing in fruit drinks. Tasty produces 4,100 cans of product per batch. Setup cost for each batch is $80 and each drink costs $0.10 to produce. a. What is the total cost per batch? b. How much would it cost to fill an order for 94,300 cans?

a.

Total cost per batch is $490

b.

The cost to fill in an order of 94300 cans will be $11270

Explanation:

The cost function for total cost per batch consists of a fixed cost of $80 for set up and a variable cost of $0.1 per unit. Thus, the cost equation for Total cost per batch is,

Let x be the number of units.

Total cost per batch = 0.1 * x + 80

a.

One batch can produce a maximum of 4100 cans.

Total cost per batch = 0.1 * 4100 + 80   =  $490 per batch

b.

To fill in an order of 94300 cans, we require the following number of batches.

Number of batches required = 94300 / 4100 = 23 batches

Total cost for 23 batches = 23 * 490 = $11270

Total cost per batch = $490

Total Cost of  the order   =  $11,270

Explanation:

a)

Total cost per batch

= Set cost per batch + cost per unit × units in a batch

=  $80 + ($0.10  × 4,100) =

=  $490

b)

Cost of an order for 94,300 cans

94,300 cans = 94,300/4,100  batches

                      = 23 batches

Total Cost of  the order = 23 × $490

                                 =  $11,270

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; blank (1) hrm specialists,blank(2); line managers;