3-44 CVP analysis. The Germa company produces two products, Spick and Span, on one machine.Spick and Span cannot be made simultaneously. There is no time required to adjust the machine whenswitching from one product to the other. One unit of Spick requires 2 machine hours to produce, whereasone unit of Span requires 4 hours. The normal occupation of the machine is 6,000 hours per year. The fixedcosts of the machine are $120,000 annually. One unit of Spick needs 2 kg of material A, whereas one unit ofSpan requires 3 kg. The budgeted price for 1 kg of material A is $4.The sales costs consist only of fixed costs, which are budgeted at $40,000 a year. The allocated fixed salescosts per product are $20.1. Calculate the cost per product for Spick and Span.Theselling price for Spick is $70 and for Span it is $120.2. Calculate the breakeven revenue when 50% of the units sold are Spick and 50% are Span.3. When material shortage causes a bottleneck, which product should be produced and sold first?R

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Answered: 1. Calculate the cost per product for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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3.Rachael has a job assembling a certain car accessory. Last month she made a total of 424 items. Calculate her gross pay (in $) if she is paid on the following differential piecework schedule. Pay Level Items produced Rate per Item 1 1–160 $9.98 2 Over 160 $11.61 $
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are reported in the table below, in addition to the feasible production plan. The relevant costs are: • Regular time production cost is $10/unit. Overtime production cost is $14/unit. Subcontracting cost is $18/unit Inventory is held at a cost of $1/unit/quarter. • Units may be backordered at a cost of $4/unit/quarter. Production Resource Regular Time Q1 Overtime Q1 Subcontract Q1 Regular Time Q2 Overtime Q2 Subcontract Q2 Regular Time Q3 Overtime Q3 Subcontract Q3 Demand in Quarter Demand in Quarter Q2 0 20 0 550 Q1 550 230 0 0 0 0 40 40 0 860 250 470 0 40 0 1330 What is the inventory cost for the year? What is the backorder cost for the year? What is the total cost for the year? Q3 0 0 0 0 0 30 510 160 0 700 What is the total overtime production cost for the year? Capacity 550 250 500…
You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 250 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of material. (Subscripts indicate the number of units required.) J K(1) L(3) M4) ..... Determine the number of units of each item required. Item K: units (enter your response as a whole number). Item L: units (enter your response as a whole number). Item M: units (enter your response as a whole number).
OQ18
If the actual production for a month is 216 and the required production is 200, how many units need to be subcontracted?
You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on ha nd of any of the items. Explode the bill of material. (Subscripts indicate the number of units required.)
As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 1 spring, and 3 clamps. The base is assembled from 2 clamp and 1 housing. Each clamp has 1 handle and 1 casting. Each housing has 2 bearing and 2 shaft. There is no inventory on hand. Part 2 a) Design a product structure noting the quantities for each item and show the low-level coding. Match each number in the structure below with the corresponding item. Number Item I Bracket II Spring Subscript left parenthesis 1 right parenthesis III Clamp Subscript left parenthesis 3 right parenthesis IV Bearing Subscript left parenthesis 2 right
The unit cost for Item #10286 has increased from $90.00 to $120.00. Howdoes this impact the ABC analysis?
You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of material. (Subscripts indicate the number of units required.) Determine the number of units of each item required. Item K: Item L: Item M: units (enter your response as a whole number). units (enter your response as a whole number). units (enter your response as a whole number). K(1) (5) M(2)
Production data show 35,920 units were transferred out of a stage of production and 6,150 units remained in ending WIP inventory that was 100% complete to material and 35% complete to conversion. The unit material cost is $5 for material and $8 for conversion. What is the amount of inventory transferred out and remaining in ending work in process inventory? Round to the whole unit and whole dollar, no decimals. Complete the tables below: Equivalent units data Units Materials Conversion Transferred out 35,920 Ending inventory 6,150 Units accounted for, equivalent units Cost data Transferred out $ Ending work in process: materials Ending work in process: conversion Ending work in process: total Costs to account for $ please fill in the information in the grid exactly as provided
Qty Standard Labor Hour Raw Material В Standard Labor 2 Hours Raw Material INDEPENDENT DEMAND Period 1 2 3 4 5 6 Total Product A 1,000 1,000 1,000 1,000 1,000 1,000 6,000 Product B 500 500 ,500 500 16. Products A and B are produced on two different dedicated production lines. If both lines work on the same shift schedule, the ratio of workers on line A to workers on line B is A. 2:1 В. 2:3 С. 2:5 D. 4:1
4. Terminator, Inc., manufactures a motorcycle part in lots of 250 units. The raw materials cost for the part is $170, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $490. The lead time to make the part is 4 weeks, and the annual demand is 4,200 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? ___ units. (Enter your response as an integer.) What is its value? $______ (Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? _____units. (Enter your response as an integer.) What is its value? $______ (Enter your response as an integer.)

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1. Calculate the cost per product for Spick and Span. The selling price for Spick is $70 and for Span it is $120. 2. Calculate the breakeven revenue when 50% of the units sold are Spick and 50% are Span. 3. When material shortage causes a bottleneck, which product should be produced and sold first?