Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a "showpiece" for display in Mexican restaurants. His forecast of capacity and demand follows:DemandCapacityRegular timeOvertime114014020217015040Month313015020CostsRegular-time cost per unitOvertime cost per unitSubcontract cost per unitInventory holding cost per unit per month4230Subcontracting: 90 units available over the 5-month periodBeginning inventory: 0 unitsEnding inventory required: 10 unitsAssume that backorders are not permitted.Using the transportation method, the total cost of the optimal plan is $ (enter your response as a whole number).15020$90$115$128$4524016020

Production is the process of manufacturing the finished products using the raw materials and…

Answered: Jose Martinez of El Paso has developed…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

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

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The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits. Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $8.70 per unit. However, fixed expenses would increase to a total of $642,060 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. 3. Refer again to the data in…
What are total regular time costs?
A 126,000 square foot office building in Plano, Texas is fully leased to the Dr. Pepper Snapple Group at a base rent of $2.50 per square foot per month. The building’s expenses total $0.90 per square foot per month and an expense stop in the Dr. Pepper lease is set at $6.00 per square foot per year. What is the annual NOI? a. $3,024,000 b. $3,175,200 c. $3,780,000 d. $2,419,200
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Month January February March April May June Total Demand Average Monthly Demand TABLE 13-4 Soda Galore Planning Data Current workforce 6 workers Average monthly output per worker 4,000 cases per month. 0.80 per case per month Inventory holding cost Regular wage rate Regular production hours/month/worker Overtime wage rate Hiring cost Subcontracting cost Firing/layoff cost Beginning inventory 4,000 (all safety stock) Assume that employees negotiate an increase in the regular production wage rate to $40 per hour and $60 per hour for overtime. Assume Soda Galore always plans to hold at least 4,000 cases of safety stock to meet unanticipated customer demand. Also assume that hiring and layoff/firing, if necessary, occur at the beginning of the month. a. Using the planning information and the newly negotiated wage rates, develop a six-month production plan based on level production. (Leave no cells blank - be certain to enter "0" wherever required.) Act Go to Demand Forecast 16,000 cases…
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As the assistant manager of a restaurant, how many servers will you need given the following information for Saturday night's dinner menu: • Demand (dinners served) = 90 dinners per hour • Server target utilization = 90% • Service rate per server = 16 dinners/hour Round your answer up to the nearest whole number. servers
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