variable cost/unit location fixed cost elm 125 .01 ferry 50 .03 getty 75 .02 if expected output is 4000, the best alternative is location 8 8
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- Problem 4. TT Racing and Performance Motor Corporation wishes to evaluate two alternative CNC machines for NHRA engine building. Use the AW method at 10% per year to select the better alternative. In-house Contract -250,000 -370,500 First cost, S Annual operating cost, $ per year Salvage value, $ Life, years -40,000 20,000 3 -50,000 30,000 5Question 5: A Mechanical Design Company produces an innovative design of Batttery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which requires material mix shown in Table Q5a. The current monthly production of Battery is 2000 units per month with the actual material consumption shown in Table Q5b. Determine the following and justify why it is favorable or adverse. (i) Material usage variance; (ii) Material price variance; (ii) Total material cost variance; Table Q5a Usage (units) 5 Materials Total cost (OMR) V 17 W 3 38 X 8 50 Y 38 Table Q5b Usage (units) 12,047 6,902 17,556 4,122 Total cost (OMR) 50,526 94,083 103,953 76,408 Materials V W YQ4. What are the important long-term issues relevant for managing capacity, revenue, and customer satisfaction for SWA? Explain comprehensively.
- Spectrum Hair Salon is considering expanding itsbusiness, as it is experiencing a large growth. Th e question iswhether it should expand with a bigger facility than needed,hoping that demand will catch up, or with a small facility,knowing that it will need to reconsider expanding in three years.Th e management at Spectrum has estimated the followingchances for demand:• Th e likelihood of demand being high is 0.70.• Th e likelihood of demand being low is 0.30.Estimated profi ts for each alternative are as follows:• Large expansion has an estimated profi tability of either$100,000 or $70,000, depending on whether demand turnsout to be high or low.• Small expansion has a profi tability of $50,000, assuming thatdemand is low.• Small expansion with an occurrence of high demand wouldrequire considering whether to expand further. If thebusiness expands at this point, the profi tability is expected tobe $90,000. If it does not expand further, the profi tability isexpected to be $60,000.Draw a…Pls help with this homework.Spectrum Hair Salon is considering expanding itsbusiness, as it is experiencing a large growth. Th e question iswhether it should expand with a bigger facility than needed,hoping that demand will catch up, or with a small facility,knowing that it will need to reconsider expanding in three years.Th e management at Spectrum has estimated the followingchances for demand:• Th e likelihood of demand being high is 0.70.• Th e likelihood of demand being low is 0.30.Estimated profi ts for each alternative are as follows:• Large expansion has an estimated profi tability of either$100,000 or $70,000, depending on whether demand turnsout to be high or low.• Small expansion has a profi tability of $50,000, assuming thatdemand is low.• Small expansion with an occurrence of high demand wouldrequire considering whether to expand further. If thebusiness expands at this point, the profi tability is expected tobe $90,000. If it does not expand further, the profi tability isexpected to be $60,000.
- 4. What is FIFO method? 5. what is Average cost method?b) What are the components of service package! S. Prepare an aggregate plan for the following information of demand forecast as given in the table below. Period 1 Demand (units) 55 2 49 Regular Production Cost Overtime production Cost Regular Production capacity 3 60 4 57 5 45 : Rs 60 per unit : Rs 80 per unit : 50 units per period : Rs 5 per unit per period Inventory cost Overtime Production capacity: 10 Units per period : Rs 150 per unit : Unlimited : Nil 6 60 7 8 50 65 9 55 Subcontracting cost Subcontracting capacity Beginning Inventory Use regular production and supplement using inventory, overtime and subcontracting.Question 3You are a Financial Planning and Control Manager at FreeAir Lid, a leading manufacturer of fans used in air conditioning systems. The company is located in Liverpool, UK In the year ended 31 March 2019, manufacturing cost per unit comprised: The company produced and sold 45,000 fans during the year ended 31 March 2019. The selling price per unit was £300 Fixed overheads for the year ended 31 March 2019 were: Jessica Olusange, Chief Executive, has developed a new strategy for the business. The company has invested in a new manufacturing facility in Leicester, UK this investment means that fixed costs will increase by £1,450,000 from 1 April 2019. However, the move to the new manufacturing facility means that direct labour costs are expected to reduce by £2 per unit, variable manufacturing overheads will reduce by £0.50 per unit and variable administrative expenses will reduce by £2 per unit. Jessica believes that her new strategy will reduce the level of financial risk to…
- May 77.000 Problem 4 (Regression Analysis, Service Company) Bobby Gonzales owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Gonzales business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods there are extra costs. One of the major events Gonzales' customers request is a cocktail party. He offers a standard cocktail party and has developed the following cost structure on a per person basis. Food and bevernges Labor (0.5 hour x PIO per hour) Overhead (0.5 hour x P14 per hour) Total costs per person PI5.00 5.00 7.00 P27.00 Gonzales is quite certain about his estimates of the food, beverages, and labor costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented below. These data indicate that overhead costs vary with the direct labor- hours used. The…Answer Question 2. Book: Essentials of Service Marketing Wirtz, J., & Lovelock, C. (2018). Essentials of services marketing (3rd ed.). Essex, England: Pearson. Case 6: The Accra Beach Hotel: Block Booking of Capacity During a Peak Period, located in the textbook: 2. Identify the various market segments currently served by the hotel. What are the pros and cons of seeking to serve customers from several segments?How did you calculate the reduced cost, allowable increase, and allowable decrease in the table for range of opitmality?