TimsTabletCo (TTC) produces tablet computers, and it must determine the number of units to be produced during each of thenext four months. The following table gives the monthly demand and the monthly cost of producing each unit:Month1234Demand (in units)50002000 6000 1000Production Cost (dollars per unit)400 600 200 300At the start, before Month 1, TTC has an inventory of 2000 units. Each month, up to 4000 units can be produced. TTC can usethe units produced in a particular month in two ways: either use some units to satisfy the demand in the same month, or storesome units in inventory for future use. The cost of storing units in inventory is $100 per unit per month.(a) Formulate an LP problem (P) to minimize the total cost of meeting the demands of the next four months.(b) Write the dual LP (D) of (P).

Decision Variables The number of units produced each month and the inventory levels at the…

Answered: TimsTabletCo (TTC) produces tablet…

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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This month your vendor invoiced $31,500 in testing charges for your production run. The unit cost for testing is twice as much for each of the first 400 units per month as compared to each unit over 400. If we shipped 500 units to the vendor this month, find: (a) Average cost per unit; (b) Cost per unit below the price break point; (c) Marginal cost for the 650th unit. The Country Fields Retirement Community charges $6000/month for a single senior citizen to reside in an efficiency apartment with assisted living care. The facility has operating expenses of $600,000 per month. Staffing levels are dependent on the number of residents.
Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March 275 April 250 May 300 June 400 July 375 August 425 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold.Iguana, Inc., had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the…
Saché, Incorporated, expects to sell 840 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 650 suits and a safety stock of 120 suits. Once an order is placed, it takes three days for Saché to get the suits in. How many orders does the company place per year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Assume that it is Monday morning before the store opens, and a shipment of suits has just arrived. When will Saché place its next order? multiple choice Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Soul Socket Inc. manufactures socket wrenches. . For next month, the vice president of production plans on producing 4,450 wrenches per day. The company can produce as many as 5,000 wrenches per day, but is more likely to produce 4,500 per day. . The demand for wrenches over the past three years averaged 4,250 wrenches per day. • Fixed manufacturing costs per month total $374,000. . The company works 22 days a month. • Fixed manufacturing overhead is charged on a per-wrench basis. a. What is the overhead rate per wrench based on Theoretical Capacity? [Select] b. What is the overhead rate per wrench based on Practical Capacity? [Select] c. What is the overhead rate per wrench based on Normal Utilization? [Select] d. What is the overhead rate per wrench based on Master Budget Utilization? [Select]
HandMI Corp. manufactures organic cotton totes in Michigan. The company estimates its production for the next four months as follows: July 5,200 units, August 7,800 units, September 7,900 units, October 8,800 units. Each tote requires 0.7 square meters of cotton. The company's cotton inventory policy is 40% of next month’s production needs. On July 1 cotton inventory was expected to be 1,456 square meters. What will cotton purchases be in July? Multiple Choice 5,393 square meters 4,118 square meters 4,518 square meters 4,368 square meters
Customers at furniture store demand an average of 6,000 bookcases per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a bookcase. Assume that the lead time to receive an order is one week. a) Each time an order is placed, how many bookcases should be ordered? b) What is the cycle time, T? c) How many orders should be placed each year? d) Determine the total annual costs of meeting the customers' demands for bookcases.
PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS Comercial El Alacrán, S.A., purchases 200,000 units per year of the only product it sells. The cost of each order is $35.00. The annual unit maintenance cost is 23% of its cost of $8.00. The supplier currently takes 5.5 days to deliver, and the company sorts and stores it in 3 days. The company makes significant efforts to shorten these lead times. If it manages to reduce, through an agreement with the supplier, its delivery time to 3.5 days and to do the sorting in 1.5 days, how many units does the decrease in the reorder point amount to?

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