How does understanding the theoretical cause help identify the problem behavior? Provide an example.
January 16, 2018
Question 2. 2. (TCO 10) One problem with a _________ logistics structure is that, because logistics activities are scattered throughout the firm, they likely remain subservient to the objectives of the department in which they are housed.
January 16, 2018

ric is now considering leaving his full-time job to grow his car detailing business but does not want to lose his salary. If he decides to pay himself $2000 per month how many cars does he have to detail in a month now to breakeven?

Eric wants to start a car detailing business but is unsure how many cars he will need to detail before making a profit. His cousin has offered to let him use a small section of his shop for only $400 per month. Eric is going to pay his friend $10/hour to help him. He has estimated his additional expenses to be the following:

Insurance $150/month

His share of monthly utilities $110

Wax (will yield 10 cars) $16.00

Towels, soap, and other supplies $2.75/vehicle

Leasing of equipment $100/month

Marketing $125/month budgeted

He estimates that it will take him 4 hours to detail a vehicle if he has help from his friend.

He plans to charge $90 per vehicle.

How many vehicles does Eric need to detail each month to breakeven?

Eric is now considering leaving his full-time job to grow his car detailing business but does not want to lose his salary. If he decides to pay himself $2000 per month how many cars does he have to detail in a month now to breakeven?

Are these numbers attainable? Please explain. List two suggestions you could give Eric that would affect his breakeven point:

 

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