Question: Please do not use a computer or spreadsheet to solve this question Excel images are not allowed for this question Firm B faces the following:
Please do not use a computer or spreadsheet to solve this question
Excel images are not allowed for this question
Firm B faces the following:
Revenue per order = $8000
750 orders/deliveries per year
Net cost as a percent of revenue = 60%
80% of late deliveries redelivered; 20% cancelled
Cost of redelivery = $350
Invoice deduction for redeliveries = $250
4. What is the total lost profit or cash flow from an 85% on-time delivery rate?
5. What is the total lost profit or cash flow from a 95% on-time delivery rate?
6. What is the percentage reduction in total lost profit or cash flow from this 10% increase in on-time delivery?
Please solve this question steps by steps. Do not use Excel spreadsheet. It is really important for me. Thank you very much.
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