For the problem data set below, what is the northwest-corner allocation to the cell Source 1-Destination 1? CCOSTSDest. 1 Dest.
2 Dest. 3 SupplyA. Source 1 2 1 3 30B. Source 2 4 2. 1 40C. Source 3 3. 8 6 20D. Demand 15. 50 25 90 \ 90
1 answer:
Answer:
Explanation:
In the Northwest-Corner Method, we first assign resources to the entity located at top-left corner of the box (north-west). Hence, in our case this entity would be the cell relating Source 1 to Destination 1.
The demand at destination 1 is only 15 units, whereas the source 1 can supply a maximum of 30 units. Thus 15 units will be supplied to destination 1 from source 1 to meet the demand.
Hence, the Source 1 - Destination 1 cell will be allocated 15 units by the North-West allocation method.
Cost related to this cell will be: 15(2) = $30.
P.S: Complete allocation to each source and destination is attached in the image.
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Hence we need to add back these amounts to arrive at the sale price.
Net Proceeds $55,000
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Total $56,000
The commission is 8.5%; however commissions are quoted as a percentage of sales price.
Expressed in other words, if the sale price was 100, commissions were 8.5. That would mean that the total above would be the equivalent of
From this we can arrive at the sale price as follows: