With the popularity of home improvement shows, Kenneth has seen a jump in inquiries about kitchen...
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With the popularity of home improvement shows, Kenneth has seen a jump in inquiries about kitchen remodels. His business, Kitchen It, employs three designers, each with expertise in architecture and interior design. He offers free quotes to potential clients with a goal of securing half of the bids for full-service work. He then works with general contractors and other vendors to complete the renovations Right now, his designers have no idle capacity. And Kenneth's hands are full too, so he can't handle hiring another designer to help with the workload. Given the strong reputation he has earned and the demand for these services, he may have to turn away potential clients. Select quantitative information is provided below for his business. Time on task refers to design hours. Number of projects available refers to projects where the client has received the bid and has asked Kenneth to move forward with the project. Average service fees Average variable costs Time on task (hours) Number of projects available Large Job $4,660 $1.380 100 40 Medium Job $2,750 $1,280 35 45 Small Job $970 $760 30 35 (a) Your answer is correct. Given Kenneth's constraint on design time, which size of project should he focus on to maximize his profitability? (Round answers to 2 decimal places, eg. 15.25) Contribution margin per hour Large Job Kenneth should focus on medium jobs. eTextbook and Media Using multiple attempts will impact your score. 25% score reduction after attempt 2 32.80 $ Medium Job $ Small Job Attempts: 1 of 3 used If his design staff has a total of 5,250 hours available, how many projects of each size should he take on to maximize profitability? Given your answer, how many projects will he have to forego? (If no project of a given size is to be taken or forgone enter O. Do not leave any field blank.) Number of projects to take Number of projects to forego Large Job Medium Job Small Job With the popularity of home improvement shows, Kenneth has seen a jump in inquiries about kitchen remodels. His business, Kitchen It, employs three designers, each with expertise in architecture and interior design. He offers free quotes to potential clients with a goal of securing half of the bids for full-service work. He then works with general contractors and other vendors to complete the renovations Right now, his designers have no idle capacity. And Kenneth's hands are full too, so he can't handle hiring another designer to help with the workload. Given the strong reputation he has earned and the demand for these services, he may have to turn away potential clients. Select quantitative information is provided below for his business. Time on task refers to design hours. Number of projects available refers to projects where the client has received the bid and has asked Kenneth to move forward with the project. Average service fees Average variable costs Time on task (hours) Number of projects available Large Job $4,660 $1.380 100 40 Medium Job $2,750 $1,280 35 45 Small Job $970 $760 30 35 (a) Your answer is correct. Given Kenneth's constraint on design time, which size of project should he focus on to maximize his profitability? (Round answers to 2 decimal places, eg. 15.25) Contribution margin per hour Large Job Kenneth should focus on medium jobs. eTextbook and Media Using multiple attempts will impact your score. 25% score reduction after attempt 2 32.80 $ Medium Job $ Small Job Attempts: 1 of 3 used If his design staff has a total of 5,250 hours available, how many projects of each size should he take on to maximize profitability? Given your answer, how many projects will he have to forego? (If no project of a given size is to be taken or forgone enter O. Do not leave any field blank.) Number of projects to take Number of projects to forego Large Job Medium Job Small Job
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Related Book For
Business A Changing World
ISBN: 978-1259179396
10th edition
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell
Posted Date:
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