paresh 1.Frandec Company manufactures, assembles, and rebuilds material handling equipmentused in warehouses and distribution centers. One product, called a Liftmaster, is assem-bled from four components: a frame, a motor, two supports, and a metal strap. Frandec'sproduction schedule calls for 5000 Liftmasters to be made next month. Frandec purchasesthe motors from an outside supplier, but the frames, supports, and straps may be eithermanufactured by the company or purchased from an outside supplier. Manufacturing andpurchase costs per unit are shown.ComponentFrameSupportStrapManufacturing Cost$38.00$11.50$ 6.50Three departments are involved in the production of these components. The time (in min-utes per unit) required to process each component in each department and the availablecapacity (in hours) for the three departments are as follows:Cutting3.51.30.8350DepartmentMilling2.21.7Purchase Cost$51.00$15.00$ 7.50ComponentFrameSupportStrapCapacity (hours)Formulate and solve a linear programming model for this make-or-buy application.420Shaping3.12.61.7680

In the competitive landscape of manufacturing and assembly, companies often face the critical…

Answered: 1. Frandec Company manufactures,…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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ELEVEN. During the closeout phase, agreements for risk transfer should be concluded. True False
33. Two offers were received by the broker at the same time, what action must the broker take? о Only present the offer with the least number of contingencies. О Only present the highest offer. Wait 24 hours for more offers to come in and present them all together. О Present both offers to the seller.
Even before he walks around the job site to talk to the foremen and supervisors, Alexander Kennedy, president of Cederfield Builders in Ghana, can smell inefficiency in a proj ect. The ammonia-like stink that can fill a construction trailer with each set of updated drawings is the telltale odor.The presence of plans, according to Mr. Walter, whose ghs400 million-a-year company is situated in Accra, implies that certain members of the building crew have yet to embrace the Internet. He understands that those who have already entered the e-construction era can view architectural drawings online and print relevant sections without wasting time waiting for the drawings to be commercially printed, packaged, and delivered to the scores of project participants each time the plans are tweaked. Mr. Walter stated of the awful old blueprint era, "It stinks." "Everything stinks. That is precisely the point."Unfortunately for Mr. Walter and the other vanguard members, the air isn't clearing fast…
S1: Cost plus contract is a contract used on long term construction contracts in which the contractor agrees to a contract price that is fixed, either at the inception or at a fixed rate per unit of output, which in some cases may be subject to cost escalation clauses. S2: Variable contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee. A. S2 True; S1 False B. S1 True; S2 False C. Both are false D. Both are true
33. During a move to a new location, the inventory records of 98 Degrees were misplaced. The bookkeeper has been able to gather some data for the July purchases: Units Unit cost Total cost July 5 10,000 65 650,000 10 12,000 70 840,000 15 15,000 60 900,000 25 14,000 55 770,000 On July 31, 17,000 units were on hand. The sales for July amounted to P6,000,000 or 60,000 units at P100 per unit. The entity always used a perpetual FIFO inventory costing system. Gross profit on sales for July was P2,400,000. What was the cost of the inventory on July 1?34. Thug Life Company provided the following information at year-end: Cost Retail Inventory, January 1 700,000 1,100,000 Purchases 4,200,000 5,700,000 Additional markup 200,000 Markdown 100,000 Sales 5,400,000 Under the approximate lower of average cost or NRV…
S1: Cost plus contract is a contract used on long term construction contracts in which the contractor agrees to a contract price that is fixed, either at the inception or at a fixed rate per unit of output, which in some cases may be subject to cost escalation clauses. S2: Variable contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee. S2 True; S1 False S1 True; S2 False Both are false Both are true
Specialty Toys, Inc., sells a variety of new and innovative children’s toys. Management learned that thepreholiday season is the best time to introduce a new toy, because many families use this time to look fornew ideas for December holiday gifts. When Specialty discovers a new toy with good market potential, itchooses an October market entry date.In order to get toys in its stores by October, Specialty places one-time orders with itsmanufacturers in June or July of each year. Demand for children’s toys can be highly volatile. If a newtoy catches on, a sense of shortage in the marketplace often increases the demand to high levels and largeprofits can be realized. However, new toys can also flop, leaving Specialty stuck with high levels ofinventory that must be sold at reduced prices. The most important question the company faces is decidinghow many units of a new toy should be purchased to meet anticipated sales demand. If too few arepurchased, sales will be lost; if too many are…
3.-What does it mean not to take advantage of the discount granted by the supplier for prompt payment? A) A punishment for paying early B) A penalty for not paying on the agreed date. C) Charge a financial cost to the purchase operation. D) A saving for paying less
What is the purpose of safety stock? Explain by citing a concrete example.
All of the following are advantages to contracting except: a. Reducing income riskb. Assuring a market for a commodityc. Eliminating default risk of a single buyerd. Ensuring and rewarding for quality
Corral Cartage leases trucks to service its shipping contracts. Larger trucks have cheaper operating costs if there is sufficient business, but are more expensive if they are not full. CC has estimates of monthly shipping demand. What comparison method(s) would be appropriate for choosing which trucks to lease? 1.Present Worth(PW) 2.Annual Worth(AW) 3.Payback Period
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