Requirements1.2.3.4.What is the total cost of producing 1,200 mailboxes?If $18,516 of the total costs are fixed, what is the variable cost of producingeach mailbox?Write Branson Mailbox's cost equation.If the plant manager uses the average cost per unit to predict total costs,what would the forecast be for 1,500 mailboxes?5.If the plant manager uses the cost equation to predict total costs, what wouldthe forecast be for 1,500 mailboxes?6.What is the dollar difference between your answers to questions 4 and 5?Which approach to forecasting costs is appropriate? Why? Branson Mailbox produces decorative mailboxes. The company's average cost per unit is $22.43 when it produces 1,200 mailboxes.Read the requirements.Requirement 1. What is the total cost of producing 1,200 mailboxes?The total cost of producing 1,200 mailboxes is

Branson Mailbox produces decorative mailboxes. The company's average cost per unit is $22.43 when it produces 1,200 mailboxes. Read the requirements. Requirement 1. What is the total cost of producing 1,200 mailboxes? The total cost of producing 1,200 mailboxes is

Branson Mailbox produces decorative mailboxes. The company's average cost per unit is $22.43 when it produces 1,200 mailboxes. Read the requirements. Requirement 1. What is the total cost of producing 1,200 mailboxes? The total cost of producing 1,200 mailboxes is

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...

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If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?
What is the answer to question number 33, 34 and 35? Provide a solution.
The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows: Proposed Plant Detroit Toledo Denver Kansas City $175,000 Annual Fixed Cost Annual Capacity 40,000 $300,000 $375,000 $500,000 10,000 20,000 30,000 The company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers as follows: Distribution Center Annual Demand Boston 30,000 Atlanta 20,000 Houston 20,000
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability LaborCost ($) Probability TransportationCost ($) Probability 10 0.2 18 0.25 2 0.74 12 0.35 20 0.35 5 0.26 13 0.45 22 0.1 25 0.3 Compute profit per unit for the base-case, worst-case, and best-case scenarios.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of…
Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.05 per pound and costs $14.35 per pound to produce. Product D would sell for $40.95 per pound and would require an additional cost of $10.35 per pound to produce. What is the differential cost of producing Product D? a.$6.21 per pound b.$10.35 per pound c.$12.42 per pound d.$8.28 per pound
Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data warehouse? What is the expected annual cost associated with that recommendation? Construct a risk profile for the optimal decision in part (a). What is the probability of the cost exceeding $700,000?
Use the following information for the next 2 questions (8 & 9). Division X produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250 Variable manufacturing costs per unit 115 Fixed manufacturing overhead costs per unit 70 8. If X is operating at capacity and has unlimited external customer demand, what should be the minimum transfer price? 9. If X has sufficient excess capacity to meet internal demand, what should be the minimum transfer price?
Solve this problem is solution
Hint(s) Check My Work Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost $9,000 == Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Production Volume = 12,000 Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all that it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur? to units (b) Use Goal Seek to find the exact…
5.) If 8,000 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 6.) If 8,000 units are sold, what is the average fixed manufacturing overhead cost per unit sold? 7.) If 12,000 units are sold, what is the variable cost per unit sold? 8.) If 12,500 units are sold, what is the total variable cost per unit sold?
Need help with D & E
Solve the problem. 6) At a manufacturing plant, the total cost (in dollars) to produce x items is C(x) = 2.04x + 2710. What is the average cost per item?