d. increase by $1,400. status: incorrect (0.0) correct: a your answer: b feedback: Incorrect. [600 × $3] - [700 × ($8 - $6)] = $400 decrease ________________________________________ 3 The following information pertains to the Norfolk Company's three products: Assume that Product C is discontinued and the extra space is devoted to the production of Product A. Product A production is increased to 500 units per year, but the selling price on all units of A is reduced to $7.00. Assuming everything
Question 1. a) How many parts should you purchase each time you place an order? R=800- ORDERING COST Annual carrying cost of capital= 20% .20 lost per dollar R= 50000 H= .80 r= .20 cost per dollar C= unit cost H=rC Qo= √2RS/H= √(2(50,000)(800)/.8) = 10,000 10,000 parts should be purchased each time an order is placed. (b) To satisfy annual demand, how many times per year will you place orders for this part? R/Qo= 50,000/10,000= 5 times per year Question 2: (a) Determine BIM’s total annual cost of production and inventory control. Q= 4 weeks supply = 1600 units R= 400 units a week= 20000 units/ year C= purchase cost per unit= $1250 X (1-.20)= 1,000 H= holding cost= rC= $200 per unit / year S= setup cost= 2000 + 93.75 = $2,093.75 Setups per year= R/Q= 20000/1600= 12.5 Annual setup cost= (R/Q)(S)=12.5X $2,093.75= $26,172 Annual Holding cost= (q/2)(H)= (1600 /2)X $200= $160,000 Total Annual Cost= Annual Setup Cost+ Annual Holding Cost Total Annual Cost= 26,172+160,000 BIM’S Total Annual Cost= $186,172 (b) Compute the economic batch size and the resulting cost savings.
Customer Analysis The total industrial consumption of cyano-acrylates which the new Bond-A-Matic 2000 would dispense was 265,000 pounds in FY 1978, expected to grow to about 335,000 pounds in FY 1979. Across 16 SIC categories, approximately 174,909 firms currently used cyano-acrylates (at a 15.5% market penetration.) 11% of CA users, i.e. approximately 19,240 firms used over 10 pounds of CAs per year, comprising at-least 75% of total current market. Assuming that growth in the CA segment stagnates, and that only heavy CA applicators would be interested in dispensing equipment the total market is still estimated at 19,240 users.
Calculate the following: a) Break-even volume in CD units and dollars; b) Net profit if 1 million CDs are sold; c) Necessary CD unit volume to achieve a $500,000 profit. You are required to submit your typewritten answer to the assigned questions in the Isidore Assignments tool. Due: 5pm Friday Sept. 20, 2013 Zhibo Wang 1. Answer: Before installing a filter, bottles of wine sold=( 102,400+200,000)/(12-2.14)=30670 After installing a filter, the fixed cost increases 30,000. Bottles of wine sold=(102,400+200,000+30,000)/(12-2.14)=33712.
We estimated how many customers we need to breakeven each year. Cash flow Projection for five years Cash Flow Analysis Year 1 Beginning Balance $0 Capital $10,000 Revenue (10 Clients) 59,700 $66,700 Disposables Purchases 49,700 Administrative $7,400 (Advertising 200, Other costs 200, Airlines 1,000, Office 6000) Wages $4,000 (2,000 each for Benny and Janet) $61,100 Ending Balance $5,600 Year 2 Beginning Balance $5,600 Revenue (15 Clients) $89,550 $93,150
Assumption 1: The trucks load an average of 75 barrels per truck. The demand is equal to the average daily deliveries (16,380/12=1,365 barrels per hour). Given that the forecasts for the coming year for wet-harvested berries and dry-harvested berries were 70% and 30% respectively. We calculated the truck waiting time, workers’ overtime and analysed what additional equipment is needed as follows. Demand: Dry barrels per hour= 1,365*30%=410 (roundup) Wet barrels per hour= 1,365*70%=956 (roundup) Total: 1365 barrels per hour Capacity list: | |capacity(barrels per hour) | |Dumper |3,000 | |Dry bin |4,000 | |wet bin |1,200 | |flexible bin |2,000 | |destoning |4,500 | |dechaffing |4,500 | |drying |600 | |seperating |1,200 |
Opposed to a car, monthly cost of gas is about $200.00 per month, filling up an average of four times a month. In addition, car insurance would deduct another $150.00 from your monthly salary. Public transportation saves money and reduces pollution. Groceries would cost about $50.00 a month, not including eating out. Next is the average electricity bill of a single person is about $75.00.
Capacity Next, we assume that Ryanair plans to operate at a higher capacity than BA, which will have a direct impact on the spread of fixed costs per unit. In the case, airport authorities claimed a volume of 500,000 passengers per year, which has remained stagnant over the last decade. Additionally, 750,000 round-trip travelers used rail and sea ferries rather than aircraft (which takes 9 hours to travel versus 1 hour for air travel). Together, this makes approximately 1.25 million round trip travelers per year on the DUB-LHR route. Ryanair intends to enter the market with a 44 seat turboprop.
Cost and Revenue A manufacturer sells a product at $8.35 per unit, selling all produced. The fixed cost is $2116 and the variable cost is $7.20 per unit. At what level of production will a) there be a profit of $4600? b) there be a loss of $1150? c) the break even point occur?
The equal probability of the copier breaking down before or after is the average time between breakdowns. So z^2/36 = 1/2. Solving gives z = 4.243 weeks. The uniform distribution for the number of copies sold per day, standard number of copies sold will be the average of the high and low estimates, which is 5000 copies per day. At 10 cents each, the expected revenue of $500 per day, and the amount will be lost while the copier is broken.