EXERCISE #10 Vyrad Enterprise has 23,000 units of demand last year. This year the top management expects the need will be increased by 25%. Therefore, the production lines must be working 3-shift per day in 6 days a week. To meet the demand, the operations only shut down a week in entire year. Presently the production assembly system produces 12 units per hour. The enterprise kept the excess units about $0.50 per unit. The delivery takes 6 working days with a cost of $10 per order. The enterprise keeps supplies approximately % months of production. (a) Find the optimum value of ordering. (b) The size of Kanban

EXERCISE #10 Vyrad Enterprise has 23,000 units of demand last year. This year the top management expects the need will be increased by 25%. Therefore, the production lines must be working 3-shift per day in 6 days a week. To meet the demand, the operations only shut down a week in entire year. Presently the production assembly system produces 12 units per hour. The enterprise kept the excess units about $0.50 per unit. The delivery takes 6 working days with a cost of $10 per order. The enterprise keeps supplies approximately % months of production. (a) Find the optimum value of ordering. (b) The size of Kanban

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $ 250 Unit variable cost 100 Total fixed costs 840,000 The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 4%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be a. increased by 800 units b. increased by 640 units c. decreased by 640 units d. increased by 400 units
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Delsteph Co introduced a new product, LD to its range last year. The machine used to mould each item is a bottleneck in the production process meaning that a maximum of 7000 units per annum can be manufactured. The LD product has been a huge success in the market place and as a result, all items manufactured are sold. The marketing department has prepared the following demand forecast for future years as a result of feedback from customers. Year 1 Demand (units) 8500 2 Maximum additional output Current selling price Variable operating costs Fixed operating costs 10500 $30000 3 The directors are now considering investing in a second machine that will allow the company to satisfy the excess demand. The following information relating to this investment proposal has now been prepared: Initial investment 7000 units 12000 Page 7 of 10 $90 per unit $40 per unit $20000 per year 4 6000 If production remained at 6000 units, the current selling price would be expected to continue throughout the…
1. Your company has an opportunity to enhance its plastic product by adding a new feature. To make the feature, you need a new injection molding machine costing $100,000. On a per unit basis the cost of the unit increases by $3.00. You expect to be able to sell it for an additional $4.00 per unit. Sales believes that the sales will be 150,000 per year for the next five years. a. What is the ROI time? Determine the answer mathematically and show your manager a graphical representation.
A firm orders on average 400 wheels each month. Demand is normally distributed with standard deviation of the monthly demand being 20 wheels. The ordering cost is $8 per order. The cost to buy one wheel is $4 per wheel. Annual carrying costs are 50% of unit cost. The supplier lead time is 2 operating days. The firm operates 240 days per year, in other word, the firm operates 20 days each month. Each order is received from the supplier in a single delivery. There are no quantity discounts. Write your answer and then Round your answer up to the nearest number for future calculation. (e.g 9.6 => 10). Please clearly write down the formulation and calculation for your answers. Note: Here I make the time measures bolded for you to make you pay the attention to their differences. Please notice the difference in times measure units, so that you do not make mistake by doing calculations with different time measures. You need to convert the data to the same time measures before doing any…
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10 Phelps Industries is a multi-product company that currently manufactures 30,000 units of part ST35 each month for use in production of its products. The facilities now being used to produce part ST35 have a fixed monthly cost of $150,000 and a capacity to produce 35,000 units per month. If Phelps were to buy part ST35 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40% of their present amount. The variable production costs of Part ST35 are $11 per unit. If Phelps Industries continues to use 30,000 units of part ST35 each month, it would realize a financial advantage by purchasing this part from an outside supplier only if the supplier's unit price is less than: A. $11.00 В. $14.00 С. $13.00 D. $16.00 Е. None of the above
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