Problem 1-8 Golf Specialties
1. Problem 1-8 Golf Specialties Company Name: Golf Specialties Products: Head covers, embroidered golf towels, umbrellas Popular Product: Head cover in the shape of a tiger Main Market: European countries Current Production Details:
|Item |Tiger Head |
|Per week Production |500 |
|Unit Cost (variable + fixed cost) |3.50 euros |
|Sale price per item |4.25 euros |
|Calculations | |
|Profit per week |500 * (4.25 – 3.50) |
| |= 375 euros |
Potential buyer details:
|Item |Tiger Head |
|Customer |Kojo Imports, Japan |
|Item to buy/week |100 |
|Offer price |2 euros |
Proposed Production Details:
|Item |Tiger Head |
|Per week Production |500 + 100 = 600 |
|Unit Cost (variable + fixed cost) |3.15 euros |
|Sale price per item |4.25 euros |
|Calculations | |
|Profit per week – Current business
|Item |Tiger Head |
|Per week Production |500 |
|Unit Cost (variable + fixed cost) |3.50 euros |
|Sale price per item |4.25 euros |
|Calculations | |
|Profit per week |500 * (4.25 – 3.50) |
| |= 375 euros |
Potential buyer details:
|Item |Tiger Head |
|Customer |Kojo Imports, Japan |
|Item to buy/week |100 |
|Offer price |2 euros |
Proposed Production Details:
|Item |Tiger Head |
|Per week Production |500 + 100 = 600 |
|Unit Cost (variable + fixed cost) |3.15 euros |
|Sale price per item |4.25 euros |
|Calculations | |
|Profit per week – Current business