O https://ezto.mheducation.com/ext/map/index.html?_con3Dcon&external_browser3D0&launchUrl=https%253A%252F%252Flms.mheducat.pendix A Assignment-PricingSavedNational Restaurant Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management isconsidering adding a machine that makes sorbet to its line of ice cream making machines. Management will negotiate the purchaseprice of the sorbet machine with its Swedish manufacturer.Management of National Restaurant Supply believes the sorbet machine can be sold to its customers in the United States for $4,950.At that price, annual sales of the sorbet machine should be 100 units. If the sorbet machine is added to National Restaurant Supply'sproduct lines, the company will have to invest $600,000 in inventories and special warehouse fixtures. The variable cost of selling thesorbet machines would be $650 per machine.okrintRequired:1. If National Restaurant Supply requires a 15% return on investment (ROI), what is the maximum amount the company would be willingto pay the Swedish manufacturer for the sorbet machines?erencesMaximum allowable purchase price per machine2. The manager who is flying to Sweden to negotlate the purchase price of the machines would like to know how the purchase priceof the machines would affect National Restaurant Supply's ROI. Construct a chart that shows National Restaurant Supply's ROI as afunction of the purchase price of the sorbet machine. Put the purchase price on the X-axis and the resulting ROI on the Y-axis. Plot theROI for purchase prices between $3,000 and $4,000 per machine. (Click the Plotter tool and drag the first point you want to plotonto the grid. Continue the line by clicking and dragging to the other end point of the line. Round ROI to 1 decimal place.)ROI< Prev3 of 3NextGrawHill 2. The manager who is flying to Sweden to negotiate the purchase price of the machines would like to know how the purchase priceof the machines would affect National Restaurant Supply's ROI. Construct a chart that shows National Restaurant Supply's ROI as afunction of the purchase price of the sorbet machine. Put the purchase price on the X-axis and the resulting ROI on the Y-axis. Plot theROI for purchase prices between $3,000 and $4,000 per machine. (Click the Plotter tool and drag the first point you want to plotonto the grid. Continue the line by clicking and dragging to the other end point of the line. Round ROI to 1 decimal place.)okntROInces25.00%20.00%-15.00%-10.00%-5.00%-0.00%$3.000$3.200$3.400$3.600$3.800$4.000Purchase price< Prev3 of 3NextRealized ROI

A target cost is the maximum amount of cost that can be incurred on a product, however, the firm can…

National Restaurant Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management is considering adding a machine that makes sorbet to its line of ice cream making machines. Management will negotiate the purchase price of the sorbet machine with its Swedish manufacturer. Management of National Restaurant Supply believes the sorbet machine can be sold to its customers in the United States for $4,950. At that price, annual sales of the sorbet machine should be 100 units. If the sorbet machine is added to National Restaurant Supply's product lines, the company will have to invest $600,000 in inventories and special warehouse fixtures. The variable cost of selling the sorbet machines would be $650 per machine. Required: 1. If National Restaurant Supply requires a 15% return on investment (ROI), what is the maximum amount the company would be willing to pay the Swedish manufacturer for the sorbet machines?

National Restaurant Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management is considering adding a machine that makes sorbet to its line of ice cream making machines. Management will negotiate the purchase price of the sorbet machine with its Swedish manufacturer. Management of National Restaurant Supply believes the sorbet machine can be sold to its customers in the United States for $4,950. At that price, annual sales of the sorbet machine should be 100 units. If the sorbet machine is added to National Restaurant Supply's product lines, the company will have to invest $600,000 in inventories and special warehouse fixtures. The variable cost of selling the sorbet machines would be $650 per machine. Required: 1. If National Restaurant Supply requires a 15% return on investment (ROI), what is the maximum amount the company would be willing to pay the Swedish manufacturer for the sorbet machines?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter24: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 12CQ

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