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Case Study MGT 345
Case Study MGT 345
GROUP PRESENTATION M
GROUP MEMBERS M
INTRODUCTION OUTLINE A B C D E F ADDITIONAL QUESTION CONCLUSION
OUTLINE PRESENTATION M
INTRODUCTION OUTLINE A B C D E F ADDITIONAL QUESTION CONCLUSION
Location Fixed Cost Per Year Variable Cost Per Unit Break-even Point
(RM) (RM) (Unit)
Ampang Jaya 200,000 1 14,285.71
Bukit Bintang is the best location because it has the lowest break-even point of 13,585 units.
INTRODUCTION OUTLINE A B C D E F ADDITIONAL QUESTON CONCLUSION
c) Plot the total cost lines for three (3) potential locations on a single draft.
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Step 3 : Calculate the quantity and total cost for each location match
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d) Over what range of annual volume (output) is each location the preferable one ? M
a) 1 – 7999 units = Cheras is the best location because it has the lowest cost.
b) 8001 – 26,666.67 units = Ampang Jaya is the best location because it has the lowest cost.
c) 27,000 and above = Bukit Bintang is the best location because it has the lowest total cost.
INTRODUCTION OUTLINE A B C D E F ADDITIONAL QUESTION CONCLUSION
e) If the owner is expecting to serve 2,000 plates per year, which is the best location ? A
= 200,000 0 = 170,000 0
(15 x 2,000) – (1x 2,000) (15 x 2,000) – (3 x 2,000)
= 200,000 = 170,000
28,000 24,000
= 180,000 0
(15 x 2,000) – (1.75 x 2,000)
= 180,000
26,500
= 6.79 unit
INTRODUCTION OUTLINE A B C D E F ADDITIONAL QUESTION CONCLUSION
f) Determine the profit for each location based on the estimated annual production. H
The profit of 2,000 plate per year. The estimated profit of 25,000 plate per year.
1) Ampang Jaya 1) Ampang Jaya
= (15 x 2,000) – RM 180,000 + (1.75 x 2,000) = (15 x 25,000) – RM 180,000 + (1.75 x 25,000)
= 30,000 – 200,000 + 3500 = 375,000 – 180,000 + 43,750
= - RM 146,500 = RM 238,750
3) Cheras 3) Cheras
Analyze non-tangible factors based on the rating for each factor at each locations. A
The best choice of intangible factors is Cheras because it has the highest score.
INTRODUCTION OUTLINE A B C D E F ADDITIONAL QUESTION CONCLUSION
CONCLUSION A