Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plantoperates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 andthe annua holding cost rate is OMR 0.30 per bag. What is the optimal total cycle time including theproduction time in year?a. 0.146O b. None is correctO c. 0.208d. 0.127e. 0.137O f. 0.108

The manufacturing company is maintained the raw material by following the methods. The management…

Answered: plant food in 50 Rg bags. LDemand is…

plant food in 50 Rg bags. LDemand is 100,00 Kgs stle can produce 250,000 Kgs. per week. The setu IRO 30 per bag What is the optimal total cycle tin

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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4. Nestle Ltd. It produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.40 per bag. What will the optimal duration of the downtime in years ? a.None is correct b. 0.076 c. 0.069 d. 0.721 e. 0.065 O f. 0.502
A chemical company produces chemicals for lawn fertilizer. The annual demand for this product, which is produced with a daily production rate of 10000 tons, is 0.6*106 tons. The preparation cost required to carry out the production is 1500 TL and the variable production cost per ton is 3.5 TL. Considering that an annual interest rate of 34% is used and 250 days a year are workeda. What is the optimum amount that should be produced from this chemical?b. How much of a cycle time was produced?
Jackson amp; Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent? Select one: O O O O O a. $81,006.15 b. $65,378.93 c. $54,224.08 d. $79,004.12 e. $38,556.67
A new project will allow you to sell a new product at $61 each. Variable costs are $24 each and fixed costs would run $75,000 per year. If there is no initial investment required, how many units would you have to sell annually to break-even (aka the "accounting break-even quantity")? (Round up to the next whole number of units.) O a. 1800 O b. 2147 O c. 2287 O d. 1778 Oe. 2028
7. A part is to be used in the assembly of a product. Alternative 1 is to manufacture it in-house and alternative 2 is to purchase from outside. Determine the break-even quantity per year between the two alternatives using the data gven in the table and i=10%. [Note: You may use TC=FC+v,Q and TC1 TC2 per year] Alternative 1: Manufacture the Part A machine will be needed for production. Initial cost of the machine will be P=$72,000 and salvage value will be F=s8000 dollars after 6 years of life. The variable production cost will be V=$1.6 per unit. Alternative 2: Purchase the part from Outside The part will be purchased at a cost of v2=$6 per unit. a) 12000 Units b) 1500 Units () 4568 Units d) 3522 Units e) 1364 Units Leave blank
Process A has a fixed cost of $16,000 per year and a variable cost of $40 per unit. For process B, 5 units can be produced in 1 day at a cost of $125. If the company's MARR is 10% per year, the fixed cost of process B that will make the two alternatives have the same annual cost at a production rate of 1000 units per year is closest to: Oa. $18,000 O b. $27.000 O C. Over $30,000 Od. Less than $10,000
Dunne Limited manufactures a standard model of garden gate. The selling price of a gote is €150. Variable costs of manufacture are C60. During the 20X5 financial year, the company expects to incur fixed production costs of €90,000 and fixed selling and administration overheads of €31,500. How many garden gates will the company have to sell in order to break even (to nearest whole unit)? Select one: O o. 1,000 units O b. 2,025 units O. 1,350 units Od. 350 units
Process A has a fixed cost of Php 120 000 per year and a variable cost of Php 210 per unit. For Process B, 5 units can be produced in 1 day at a cost of Php 625. Find the fixed cost of process B that will make the two alternatives have the same annual cost at a production rate of 1000 units per year. a. Php 205 000 b. Php 178 200 c. Php 315 055 d. Php 361 000
2. A new copier company plans to produce one model of copier. The copiers will sell for $820 each. The annual fixed costs of operation are $5,600,000 and the variable cost is $210 per unit. a. Assuming that they can sell everything they produce at this price, compute the breakeven quantity QBEP. b. If the company actually produces 11,000 copiers the first year, what will the profit/loss be? c. Include a fully-labeled breakeven chart illustrating the problem. 3. Fixed and variable cost for three potential facility locations are as shown below. Fixed cost Variable cost Location per year $240,000 $100,000 $150,000 per unit $15 $30 $20 a. Plot the total cost lines for these four locations on a single cost-volume graph. b. If expected output is to be 12,000 units per year, which location would provide the lowest cost? c. Identify the range of output over which each location alternative would be preferred (lowest cost). Compute the relevant crossover points, and clearly indicate your…
A plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is ₱40 per unit, and the product sells for ₱90 per unit. a. What is the plant’s breakeven point in terms of quantity per year? b.If the selling price is increased to ₱100 per unit, how many units must be sold to achieve a profit of 3M per year? c.If 80% of the output capacity per year are sold, what would be the annual profit? If 100%? d.If 100% of the output capacity per year are sold, what would be the annual profit?
Process A has a fixed cost of $160,000 per year and a variable cost of $50 per unit. For Process B, 10 units can be produced in 1 day at a cost of $200. If the company’s MARR is 10% per year, what will the annual fixed cost have to be for Process B in order for the two alternatives to have the same annual total cost at a production rate of 1000 units per year?
The process for producing a fruit-tree pesticide has a first cost of $200,000 with annual costs of $50,000 and revenue of $90,000 per year. What is the payback period at (a) i = 0%, and (b) i = 12% per year?