Bsop 434 Week 2 Lab Answers Essay Example
Week 2 Lab
|Step 1: First Year Costs | |
Question 1: What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
Based on 120 container shipments per year with 10% loads return or 12 containers, this would generate revenues equal to the associated cost.
Looking at the charts below the proposed service would actually lose money as the investment of $255.350 can’t be gained back. Investment cost would be 10 containers X 7 which equals 70. Re-equipping of 5 flatcars X 9 would equal 45. For a total investment of 115. 115 X 2,222 = $255,530.
|Cost Category |Monthly Cost |Annual Cost |
|Inbound transportation |20,000 |240,000 |
|Outbound transportation |10,000 |120,000 |
|Maintenance | |22,220 |
|Energy | |33,330 |
|Total | |415,550 |
| | | |
|Revenue Category |Monthly revenue |Annual revenue |
|Mushroom sales |30,000
|Step 1: First Year Costs | |
Question 1: What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
Based on 120 container shipments per year with 10% loads return or 12 containers, this would generate revenues equal to the associated cost.
Looking at the charts below the proposed service would actually lose money as the investment of $255.350 can’t be gained back. Investment cost would be 10 containers X 7 which equals 70. Re-equipping of 5 flatcars X 9 would equal 45. For a total investment of 115. 115 X 2,222 = $255,530.
|Cost Category |Monthly Cost |Annual Cost |
|Inbound transportation |20,000 |240,000 |
|Outbound transportation |10,000 |120,000 |
|Maintenance | |22,220 |
|Energy | |33,330 |
|Total | |415,550 |
| | | |
|Revenue Category |Monthly revenue |Annual revenue |
|Mushroom sales |30,000