Cru Rental

Assume that operations will be able to ensure that all buffer sizes are same as they were in 1996 for all the three options (status 20 buffer continues at 2 weeks). Which of the options would you recommend why?

i. Capture 60% of the 4 week Market, 30% of the 8 week market and 10% of the 12 week market.

|  |8 Week Units |Rental($) |4 Weeks Units |Rental($) |12 Weeks |Rental |

| | | | | | |($) |

|Expenditure ($) : |142543.80 | | | | | |

|Contribution ($) : |91456.20 | | | | | |

|Depreciation ($) : |88142.95 | | | | | |

|Profit ($) : |3313.25 | | | | | |

|Profit per M/c : |0.24 | | | | | |

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ii. Capture 40% of the 4 week Market, 40% of the 8 week market and 20% of the 12 week market.

  |8 Week Units |Rental($) |4 Weeks Units |Rental($) |12 Weeks |Rental($) | | | |TIV : |1000 |30 |1500 |40 |600 |25 | | | |Total Units: |8000 |240000 |6000 |240000 |7200 |180000 | | | | |40% | |40% | |20% | | | | |  |8 Week Units |Rental($) |4 Weeks Units |Rental($) |12 Weeks |Rental($) | | | |  |400 |30 |600 |40 |120 |25 | | | |Total Units: |3200 |96000 |2400 |96000 |1440 |36000 | | | | | | | | | | | | | |  |Customer |Receiving |Status 24 |Status 40 |Status 41 |Status 42 |Status 20 |Total | |Throughput Units/ Week |1120 |1120 |784 |454 |454 |454 |1120 |5505 |...