Bsop 434 Week 2 Lab Answers

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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...
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