# A northern hardware company | Accounting homework help

A northern hardware company is studying a plan to open a new distribution center in southeast. The company plans to rent a warehouse and an adjacent office, and distribute its main products to the local dealers. The company has decided to initially start with four of its main products: Pressure washers, Go karts, Generators, and Water pumps. The company’s finance department has notified the management that such an investment is advised only if the new facility generates at least a net profit of \$400,000 in the first year of its operation.

The company estimates that the monthly rent and utilities will be about \$20,000. Also, the management plans to sign a contract with a local company to rent a number of forklifts for a monthly fee of \$1,500. Furthermore, the company estimates that it will have to spend an additional \$420,000 annually to hire a manager, a secretary, and five full time employees. The table below describes how much each of the products cost the company (including transportation costs):

Item                                          Cost in dollars

• Pressure washer                        \$320.00
• Go-kart                                         \$380.00

• (Case of 5 Water Pumps)         \$645.00

The company has set aside a budget of \$170,000 for merchandise each month to be sent to the new location. The selling prices (per unit) for each item are given below:

Item                               Selling price

• Pressure washer             \$499.99
• Go-kart                              \$719.99
• Generator                         \$699.99
• Water pump                     \$269.99

Other than the budget, another of the company’s concern is the available space in the warehouse. The warehouse has 82 shelves and each shelf is 30 ft long and 5 ft wide. Pressure washers and generators each are stored on 5 ft by 5 ft pallets whereas each Go Kart is stored on an 8 ft by 5 ft pallet. Furthermore, a 5 ft by 5 ft pallet is used to store four cases of water pumps (there are five water pumps in each case).

For promoting its brand products, the company’s marketing department has decided to allocate at least 30% of its inventory to pressure washers and Go Karts, and sell at least twice as many generators as water pumps.

Perform a monthly analysis using a linear programming model. Then determine whether the company should open its new branch in southeast.

Please complete the following in a Word document

1. Describe the three components of the LP problem. (5 points)

2. Write the formulation of the problem. (5 points)

3. Solve the problem in an Excel workbook by using the Excel Solver, and generate both the Answer and Sensitivity reports of Excel. (30 points)

4. Write the optimal solution in the word document, and explain whether the condition set by the company’s finance department has been satisfied. (5 points)

5. One of the decision variables has an optimal value of zero. In the word document, explain what the selling price of that item should be in order for this optimal solution value to change. (5 points)

6. In the word document explain whether, in addition to the \$170,000 allocated to the merchandise during the first month, the company should allocate additional money. If yes, how much additional investment do you recommend, and how much should the company expect its net profit to increase as a consequence? (5 points)

7. In the word document explain whether you recommend that the company should rent a smaller or a larger warehouse. In any case, indicate the size of your recommended warehouse in square feet, and indicate how much this change in the size of the warehouse will contribute to the yearly profit. (5 points)

Submissions must include both the completed Excel workbook and the completed Word document as attachments. Please note that incomplete submissions are not accepted.

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
History
Excellent work.
Customer 463001, June 12th, 2022
Retail
Great services
Customer 463473, November 10th, 2022
English 101
Creative!
Customer 460641, April 13th, 2022
SEO
A job well done
Customer 463679, April 30th, 2023
Accounting
Thank you for the revision! This is how it should look like.
Customer 463407, October 16th, 2022
Political science
Great job God bless you
Customer 453983, February 4th, 2020
Classic English Literature
Good work.
Customer 460021, June 3rd, 2022
Education
Nice try.
Customer 452441, April 19th, 2022
Organization behavior
thank you
Customer 462271, November 30th, 2021
Law
good job
Customer 452741, March 27th, 2020
Commitment Statement for Canberra - Subclass 491 Offshore Visa
Thank you so much for all your help and support. Thank you writer for all your efforts and great work. Thank you all once again.
Customer 455757, January 29th, 2022
English 101
Thanks for helping me out.
Customer 463847, February 22nd, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend