Question: Step by step explanation please CoursHeroTranscribedText: A retail website sells a variety of products including clothes, electronics, furniture, sporting goods, books, video-games, and DVDs, among

Step by step explanation please

Step by step explanation please CoursHeroTranscribedText: A retail website sells a variety

CoursHeroTranscribedText: A retail website sells a variety of products including clothes, electronics, furniture, sporting goods, books, video-games, and DVDs, among other items. An average customer order is $44. Weekly total variable costs are $369,000 and weekly fixed costs are $85,000. The company averages 18,400 orders per week and 19% of all orders are returned for a variety of reasons besides the customer not liking the product, including product misinformation on the website, errors in ful-filling the order, incomplete orders, defective product, breakage, etc. A total of 30% of all returned orders are turned around and refilled correctly per the customer's desire, but at a cost (for handling, packaging, and mailing) of $14 per order, while the remaining 70% of returned orders are lost. In addition, it is estimated that half of the customers associated with lost orders will not return to the website, at a cost of $11 per order. Determine the weekly cost of poor quality for the website. Weekly cost $ 454,000 The company can implement a quality-improvement program for $800,000 a year that will reduce the percentage of returned orders to 2%; should the company invest in the program? (Round answers to 2 decimal places, e.g. 5,275.75.) Without quality improvements With quality improvements Total cost of defects $ 135,819.60 14,296.80

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