Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding new equip-ment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variablecost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
Q: Who needs to be involved in capacity planning?
A: person who needs to be involved in capacity planning as follows:
Q: duction? Ex
A: Capacity refers to a framework's potential for creating merchandise or conveying administrations…
Q: Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two…
A: Fixed Cost- Fixed expenses are costs that do not change based on whether sales or production…
Q: snip
A: Given Data: Inventory in between beginning of next week = 62 Demand for next week = 25 Ending…
Q: Blis Stadium has the physical ability to handle 71,870 Bills fans, yet the Executive Director of…
A: Find the Given details below: Given details Average attendance 68839 Fans Design Capacity…
Q: Explain what is the significance of using a big picture approach to capacity planning?
A: The big picture approach can be characterized as considering all of a business's uncertainties to…
Q: What are the value chain links in a homeless shelter? Are each of these internal or external? How do…
A: Thank you for the questions. As per guideline, we are allowed to provide one answer at a time.…
Q: What elements are included in a strategic level capacity plan? Please list 6 items and explain…
A: Below is the solution:-
Q: What is capacity planning and explain with examples?
A: Capacity planning is nothing but the process through which a company sees how much work it can…
Q: Out of the following factors that are affecting Capacity Planning, which one is Less Controllable…
A: Capacity planning is the process of planning the required production output based on the requirement…
Q: Gordon Miller's job shop has four work areas, A, B, C, and D. Distances in feet between centers of…
A: Given: Cost per work piece of 1 foot = $1 Formulae used- Total workpiece-foot = ∑(Workpiece moved…
Q: Why might the choice of equipment that provides flexibility sometimes be viewed as a management…
A: The flexible systems are viewed by the managers as hedge. So sometimes they opt for such a system…
Q: Capacity decisions must be integrated into the organization’s mission and strategy. True or false?…
A: The statement is true; capacity decisions must be coordinated into the association's main goal and…
Q: California Gardens, Inc., prewashes, shreds, and dis-tributes a variety of salad mixes in 2-pound…
A: The monthly profit or loss if the company changes to the Hi-Speed shredder and sells 60,000 bags per…
Q: What are the issues related to capacity building for scale advantage and its short falls?
A: CAPACITY BUILDING Capacity Building is also known as Capacity Development. It refers to the…
Q: What are the major trade-offs in capacity planning?
A: Some of the major trade-offs that are present in capacity planning are as follows:
Q: Wolfgang Kersten Mfg. intends to increase capacitythrough the addition of new equipment. Two vendors…
A: Contribution margin = CM = Price – variable cost CM for X = 200-120= $80 CM for Y = 200-100= $100
Q: Two different manufacturing processes are being considered for maing a new product. The fir proceess…
A: Given data For the 1st process Fixed cost (FC1) = $50,000 Variable cost (VC1) = $700 For the…
Q: The Denver Iron & Steel Company is expanding its operations to include a new drive-in weigh station.…
A:
Q: How is capacity utilization computed, and what does it tell us?
A: Economic output is described as the all the services and the good that are manufactured by a country…
Q: Define what you mean by "what-if analysis." How might a spreadsheet be used in capacity planning?
A: What-If Analysis is that the process of adjusting the values in cells to ascertain how those changes…
Q: Explain long-term capacity and how it interacts with scale economies and diseconomies
A: Planning process is a technique for estimating an organization's ability (maximum limit) to provide…
Q: Short-term capacity planning deals with which of the following factors? Select one: O All of choices…
A: Capacity Planning: Capacity Planning is very important to every manufacturing…
Q: (a) ANKIT LTD. operates a throughput accounting system. The details of product B-1 per unit are as…
A: e) Limitations of Interfirm comparison are: (i) Top management may not be convinced of the utility…
Q: Explain what exactly is capacity requirements planning?
A: Capacity requirement planning is the accounting term for the process of determining a company's…
Q: Stapleton Manufacturing intends to increase capac-ity through the addition of new equipment. Two…
A: Formula:
Q: At first glance, the concepts of the focused factory and capacity flexibility may seem to contradict…
A: focused factory and capacity flexibility
Q: What is the significance of using a big-picture approach to capacity planning ?
A: The big picture approach may be characterized as considering all the uncertainties in a business to…
Q: XYZ Co. would like to install a new computer system, which must be completed in 15 months. Or else,…
A: Given Information: Conditions Cost Probability Install a Computer System…
Q: Two different manufacturing processes are being considered formaking a new product. The first…
A: Process 1 (less capital intensive): Fixed Cost = $46,400 Variable Cost = $720 per unit Process 2:…
Q: A manufacturing plant has the process displayed below. The drilling operation occurs separately from…
A: A) Bottleneck Bottleneck is the cycle or a stage that restricts a whole framework's ability to…
Q: Explain what a capacity in chunks mean and why is it a consideration in capacity planning?
A: Capacity planning allows organizations to guarantee ensure their traditional delivery capacity are…
Q: Breifly explain Steps in the Capacity Planning Process?
A: Capacity is the ability to store, produce, or achieve. In any organization, capacity is termed as…
Q: How does revenue management impact an aggregate plan?
A: The revenue management process can be broken down into two components: aggregate planning and price…
Q: Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total…
A: Given- Selling price = $15 Variable cost = $2 Fixed Cost = $5,000 Sales = 500 units
Q: How can a systems approach to capacity planning be useful?
A: Capacity planning is the planning of a firm to know the production capacity needed to satisfy the…
Q: What volume (units) of output would the two alternatives yield the same profit?…
A: Given data For proposal A Fixed cost = $50000 Variable cost = $12 Revenue = $20 For proposal B…
Q: a. If the mission wants to complete a care package every 10 min- utes, how many volunteers should be…
A: Therefore. Minimum number of workstations required = Total time taken for all tasks / required cycle…
Q: Given the following master production schedule require-ments and bill of labor, determine the work…
A:
Q: What is the actual hours worked? 1,400 1,600 1,598 1,402
A: Production is the process of converting inputs into finished products and services for the…
Q: Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total…
A: Given - Selling price = $15 Fixed costs = $5000 Variable cost = $2 Sales = 500 units
Q: Explain what does it mean to take a big-picture approach to capacity planning
A: Capacity planning is the process of estimating the required facility to produce the required output.…
Q: What impact does the product mix have on capacity planning?
A: A practical item mix system enables a business to concentrate its efforts and resources on the goods…
Q: What is a flexible manufacturing system, and under what set of circumstances is it most appropriate?
A: FMS is a group of numerically controlled machines and tools that are controlled and managed…
Q: California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in…
A: Given- Fixed costs for high speed shredders = $85,000 per monthVariable costs for high speed…
Q: How does product mix affect capacity planning?
A: An effective item blend system empowers an organization to zero in endeavors and assets on the items…
Markland Manufacturing intends to increase capac-
ity by overcoming a bottleneck operation by adding new equip-
ment. Two vendors have presented proposals. The fixed costs for
proposal A are $50,000, and for proposal B, $70,000. The variable
cost for A is $12.00, and for B, $10.00. The revenue generated by
each unit is $20.00.
a) What is the break-even point in units for proposal A?
b) What is the break-even point in units for proposal B?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line ofpies, which will require leasing new equipment for a monthly payment of $6,000. Variablecosts would be $2 per pie, and pies would retail for $7 each.a. How many pies must be sold in order to break even?b. What would the profit (loss) be if 1,000 pies are made and sold in a month?c. How many pies must be sold to realize a profit of $4,000?d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie?The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which will require leasing new equipment for a monthly payment of $6,000. Variable costs would be $2 per pie, and pies would retail for $7 each. a. How many pies must be sold in order to break even? b. What would the profit (loss) be if 1,000 pies are made and sold in a month? How many pies must be sold to realize a profit of $4,000? С. d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie? 5-30Heath Production manufactures chairs. Several weeks ago, the company received an inquiry from Rose Limited. Rose wants to market a foldable chair similar to one of Heath’s and has offered to purchase 12 000 units if the offer can be completed in three months. The cost data for Heath’s foldable chair is as follow: Direct material $16.40 Direct labour (0.125 @ $36 per hour) 4.50 Total manufacturing overhead 20.00 Total $40.90 The normal selling price of Heath’s foldable chair is $51.00. However, Rose has offered Heath only $31.50 because of the large quantity it is willing to purchase. Rose requires a modification of the design that will allow a $4.20 reduction in direct material cost. The production manager of Heath notes that the company will incur $8400 in additional setup costs and will have to purchase $5800 special equipment to…
- 2.17 For the following data, calculate the number of workers required for level production and the resulting month-end inventories. Each worker can produce 14 units per day, and the desired ending inventory is 9000 units. Month Working Days Forecast Demand Planned Production Planned Inventory 11,500 1 2 3 4 Total 20 24 12 19 28,000 27,500 28,500 28,500Jubelien and Joshua have joined forces to start Rosen old Lettuce Products, a processor ofpackaged shredded lettuce. Jubelien has years of food processing experience and Joshua hasextensive commercial food preparation experience. Together with the help from vendors, theycan adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag oflettuce. They think a largely manual process will have monthly fixed cost of 37,500Php andvariable cost of 1.75Php per 5-pound bag. A more mechanized process will have fixed costs of75,000Php per month with variable costs of 1.25Php per 5-pound bag. They expect to sell theshredded lettuce for 2.50Php per 5-pound bag.a. What is the break-even quantity for the manual process?b. What is the revenue at the break-even quantity for the manual process?c. What is the break-even quantity for the mechanized process?d. What is the revenue at the break-even quantity for the mechanized process?e. What is the monthly profit or loss of the…Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and Web site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell access to the book for $46 each. a. What is the break even point? b. what profit or loss can be anticipated with a demand for 3800 copies c. Wiht a 3800 copy demand, proced at $50.95 , what profit or loss can be expected?
- Consider the following product structure. If the demand for product A is 50 units, how many units of component E will be needed? OA. 100 OB. 250 O C. 300 O D. 4 OE. 200 Show transcribed image text C (1) B(2) D (1) D (1) A C (3) E (2) D (1) F (1) G (2)So and Ralph have joined forces to start SoRap Chip Products, a processor of packaged okra chips.So has years of food processing experience, and Ralph has extensive commercial food preparationexperience. Together with the help from vendors, they can adequately estimate demand, fixed costs,revenues, and variable cost per 5-pound bag of okra. They think a largely manual process will havemonthly fixed cost of 37,500Php and variable cost of 1.75Php per 5-pound bag. A more mechanizedprocess will have fixed costs of 75,000Php per month with variable costs of 1.25Php per 5-poundbag. They expect to sell the okra chips for 2.50Php per 5-pound bag. What is the break-even quantityfor the manual process?A manufactures the chairs. Manufacturing costs are expected to be £120 per chair, consisting of 70% variable costs and 30% fixed costs. The company has surplus capacity available. A's policy is to add a 60% profit margin to full costs. A large restaurants chain is going to replace the chairs in all branches. A is invited to submit a bid to the restaurant's chain. What is the lowest price per chair. A should bid on this long-term order? 1. £24,000 2. £14,400 3. £16,800 4. £38,400
- Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at the end of the year four and will continue every three years thereafter up to and including year 13. The interest rate is 12% per year. a. Draw a cash-flow diagram b. What is the present equivalent of the overhaul expenses at time 0? c. What is the annual equivalent expense/annuity during only years 5-13?The Best Wheels Bicycle Company produces bicycles indifferent styles for boys and girls, in heights of 26 inchesor 20 inches, and with 10 speeds, 3 speeds, or 1 speed.a. How many different kinds of bicycles does BestWheels make?b. Construct a modular bill of material for Best Wheels(one level). Assume that bike sales are equally splitbetween boys and girls, 26-inch bikes are preferredtwo-to-one to 20-inch bikes, and 3-speed bikes accountfor only 20% of sales. The remaining sales are dividedequally between 10-speed and 1-speed bikes.c. If bicycle sales are expected to reach 10,000 over theholiday shopping season, how many 26-inch bikesshould Best Wheels plan to produce? How many 10-speed bikes?What Is Support Operational Requirements?