3. Hausbuum Sdn Bhd., has a new sparkling real juice drink for which it has high hopes. Farah,the production planner, has assembled the following cost data and demand forecast:Forecast1,800Quarter11,10031,600900Costs/other dataPrevious quarter's output 1,300 casesBeginning inventory = 0 casesStockout cost = RM 150 per caseInventory holding cost RM 40 per case at end of quarterHiring employees RM 40 per caseTerminating employees RM 80 per caseSubcontracting cost = RM 60 per caseUnit cost on regular timeOvertime cost = RM 15 extra per caseCapacity on regular time 1,800 cases per quarterRM 30 per caseFarah's job is to develop an aggregate plan. The three initial options she wants to evaluate are:• Plan A: a strategy that hires and fires personnel as necessary to meet the forecast.• Plan B: a level strategy.• Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecastdemand with inventory and subcontracting.a) Determine the lowest-cost plan?b) If you are Farah's boss, the head for operations, which plan do you implement and why?

Analysis of Plan A:: Plan A:: Quarter Previous 1 2 3 4 Forecast 1800 1100 1600 900…

Answered: 3. Hausbuum Sdn Bhd., has a new…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Johnson Stores produce and sell face powder called the 'Success' in cases. Each case is sold for $80. The following information relates to the product in the autumn and summer of 2020: Sales Production Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expenses Variable selling expenses Variable administrative expenses are 10% of sales value Fixed administrative expenses are 25% of sales value Autumn 23,400 units 28,500 units $136,800 $133,950 $71,250 $120,000 $25,500 $42,750 Summer 35,700 units 30,600 units $146,880 $143,820 $76,500 $122,000 $25,500 $45,900 Normal capacity for the year was 117,600 cases to be produced evenly throughout the year with a budgeted cost of $470,400. Assume that there will be no inventory held on January 1, 2020. Required: (1) Prepare profit statement for each of the two quarters using absorption and variable costing techniques. (2) Compute and reconcile the differences in the operating incomes of both…
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Please help with question. It ends at 4.3
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