Decisions Inputs

price
Qty from supplier
Price charged from open market

220
$2.20
$1,005,000.00 pounds
$0.20

Calculations
Variable Cost Calculation
inhouse cost
outsourcing cost
Processing Cost

$300,000.00
$168,750.00
$468,750.00

Cost of Grapes
Cost from Supplier
Cost from open market
Total Cost of grapes

$251,250.00
$174,000.00
$425,250.00

Revenue
Demand
Price charged
Revenue from sales

750,000
$2.20
$1,650,000.00

Outputs
demand for raisins
Grpes required
Pre Tax profits
$1,005.00
$200.00

Sugar coating Cost

Coating required
per unit cost
total cost of sugar coating

Total Cost Of Production

Total Variable Cost
Total Fixed Cost
Total cost of Production

$37,500.00 pounds
0.55 $/pound
$20,625.00

$914,625.00
$200,000.00
$1,114,625.00

750,000
1,875,000
$535,375.00

General
Fixed cost
total qty of grapes

200,000
1,875,000

Variable cost

total qty of grapes

Qty of grapes upto 1500000
Qty of grapes above 1500000

Grapes cost
qty from supplier
qty from open market

1,875,000
1,500,000
375,000

1,005,000.00
870000

870,000.00

1,500,000
0.2

1,050,000
1,035,000
1,020,000
1,500,001 1,005,000
0.45 990,000
975,000
960,000
945,000
930,000
915,000
900,000
885,000
870,000
855,000
840,000
825,000
810,000
795,000
780,000
765,000
750,000
735,000
720,000
705,000
690,000
675,000
660,000
645,000
630,000
615,000
600,000
585,000
570,000
555,000
540,000
525,000
510,000
495,000
480,000
465,000
450,000
435,000
420,000

405,000
390,000
375,000
360,000
345,000
330,000
315,000
300,000

Total qty of grapes to be processed

Qrty to be processed in house
2,625,000
1,500,000
2,587,500
1,500,000
2,550,000
1,500,000
2,512,500
1,500,000
2,475,000
1,500,000
2,437,500
1,500,000
2,400,000
1,500,000
2,362,500
1,500,000
2,325,000
1,500,000
2,287,500
1,500,000
2,250,000
1,500,000
2,212,500
1,500,000
2,175,000
1,500,000
2,137,500
1,500,000
2,100,000
1,500,000
2,062,500
1,500,000
2,025,000
1,500,000
1,987,500
1,500,000
1,950,000
1,500,000
1,912,500
1,500,000
1,875,000
1,500,000
1,837,500
1,500,000
1,800,000
1,500,000
1,762,500
1,500,000
1,725,000
1,500,000
1,687,500
1,500,000
1,650,000
1,500,000
1,612,500
1,500,000
1,575,000
1,500,000
1,537,500
1,500,000
1,500,000
1,500,000
1,462,500
1,462,500
1,425,000
1,425,000
1,387,500
1,387,500
1,350,000
1,350,000
1,312,500
1,312,500
1,275,000
1,275,000
1,237,500
1,237,500
1,200,000
1,200,000
1,162,500
1,162,500
1,125,000
1,125,000
1,087,500
1,087,500
1,050,000
1,050,000

1,012,500
975,000
937,500
900,000
862,500
825,000
787,500
750,000

1,012,500
975,000
937,500
900,000
862,500
825,000
787,500
750,000

Qty to be outsourced
1,125,000
1,087,500
1,050,000
1,012,500
975,000
937,500
900,000
862,500
825,000
787,500
750,000
712,500
675,000
637,500
600,000
562,500
525,000
487,500
450,000
412,500
375,000
337,500
300,000
262,500
225,000
187,500
150,000
112,500
75,000
37,500
-

General

DEMAND ESTIMATION

Price
2
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09
2.1
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.2
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.3
2.31
2.32
2.33
2.34
2.35
2.36
2.37
2.38
2.39
2.4
2.41
2.42
2.43

Qty demanded
1,050,000
1,035,000
1,020,000
1,005,000
990,000
975,000
960,000
945,000
930,000
915,000
900,000
885,000
870,000
855,000
840,000
825,000
810,000
795,000
780,000
765,000
750,000
735,000
720,000
705,000
690,000
675,000
660,000
645,000
630,000
615,000
600,000
585,000
570,000
555,000
540,000
525,000
510,000
495,000
480,000
465,000
450,000
435,000
420,000
405,000

elasticity -

4.4

0.0909090909
-40%

2.44
2.45
2.46
2.47
2.48
2.49
2.5

390,000
375,000
360,000
345,000
330,000
315,000
300,000