The firm is considering a selling price of $ 135 to retailers. The number of households considered to be within the potential market in the marketing area is 8,500,000. Households only buy new grills every 10 years. What is the market share that the business will have to achieve to break even? Would you enter this market?
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.
What are the total labor costs involved in making these 12 rugs? (4 points) b. How much profit does this company make every year? (4 points) c. If a team of three workers in the United States, each making the federal minimum wage, produced these 12 rugs, what would the total labor costs be? Don't forget that these workers would be working overtime.
40 miles * 16.5¢/mile=$6.60 per trip * 3 trips/wk=$19.80/wk * 52wks/yr=$1029.60 per year in tax deductible transportation costs. 52. On April 1, 2010, Paul sold a house to Amy. The property tax on the house, which is based on a calendar year, was due September 1, 2010. Amy paid the full amount of property tax of $2,500.
Littlefield Case Capacity Assessment: how many machines to buy at each stage Based on the data for 50 days of simulated operations following observations were made: Average Demand: 12.22 orders per day, standard deviation: 3.55 orders per day Average Jobs completed: 11.875 orders per day Average Utilization of machine 1: 0.896 Average Utilization of machine 2: 0.93 Average Utilization of machine 3: 0.898 Average Capacity = Average Jobs completed / (Average Utilization * # of machines) Therefore, average Capacity of machine 1: 4.42 orders per day Average Capacity of machine 2: 12.77 orders per day Average Capacity of machine 3: 13.22 orders per day CVa = Std. Dev of Demand / Mean Demand = 0.29 CVp is assumed to be zero Therefore, average waiting time in the queue turned out to be 0.6 hours, 0.68 hours, and 0.66 hours respectively at stage 1, stage 2 and stage 3. Considering these waiting times, the new throughput rate at each stage came to be 11.93, 9.37 and 9.71 orders per day respectively at stage 1, stage 2 and stage 3. If one more machine is bought at each stage the capacity will increase and the average waiting time in the queue would get reduced. The new throughput rate (including the average queue waiting time) at each stage came to be 16.37, 21.78 and 22.55 orders per day respectively at stage 1, stage 2 and stage 3.
I then took the number of gallons I use a year and multiplied it with 125,000 BTUs, which is the amount of energy in one gallon of gasoline, to find the total number of BTUs I use in one year (50,000,000). 2. To find out the heat energy to heat the water of my house I first weighed my container (107 g). Then I turned on the water faucet so that it dripped about 1 drip per second. I then captured the water in my container for 15 minutes.
The adult admission is $8 and the children’s admission is $4. How many adult patrons were there? Mixture Problem One solution is 20% acid and another is 12% acid. How many cubic centimetres of each solution should be mixed to obtain 100 cubic centimetres of a solution that is 15% acid? Cost and Revenue A manufacturer sells a product at $8.35 per unit, selling all produced.
Total material cost for each doll is approximately $3.50; she has to invest $20 in the necessary supplies (expendables) per day; energy costs are assumed to be only $4.00 per day; and she thinks she should be making $10 per hour for her time. Viewing this from a total (multifactor) productivity perspective, what is her productivity at present and with the new paint? Problem 4: How would total (multifactor) productivity change if using the new paint raised Ms. French’s material costs by $0.50 per doll? Problem 5: If
b. Lease equipment for $25,000 per month. The equipment requires three operators with salaries of $25,000 per year each. c. Buy a state of the art robot that cost $8,000,000 and will last for 9 years. The robot will require a technician with a salary of $35,000 per year.
Managerial Finance Unit 8 Assignment Exercise Caty's Candles makes and supplies specialty candles for holidays and weddings. Caty purchased $2,000 worth of inventory from Wanda's Wax on March 1st from a supplier who extended terms of 2/10, net 30 EOM. At the same time, she made these additional purchases. Caty puchased scented oil from Sally's Scents for $800 with terms of 1/10, net 40 EOM; candle wicks were purchased from Wazzle's Wicks for $300, with terms of 3/20, net 45 EOM; candle dye from David's Dyes and Colors for $650 with terms of 4/20, net 60 EOM; candle molds from Molly's Molds were $1,800 with terms of 2/10, net 45 EOM; and glaze was purchased from Gandy's Glaze for $250, with terms of 1/45, net 60 EOM. Caty's Candles is a new business and has limited cash flow.