Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. Thesedevices have very fast access and large storage capacity.Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level isto be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause anyadverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not thelowest-cost alternative. The forecast for the next 12 months isMONTHJanuaryFebruaryMarchAprilMayJuneFORECASTDEMAND605805905605405305MONTHJulyAugustSeptemberOctoberNovemberDecemberFORECASTDEMAND205205305705805905Manufacturing cost is $220 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per monthand is assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $23per unit short.The inventory on hand at the beginning of the planning period is 220 units. Twelve labor hours are required per DVD player. Theworkday is nine hours.Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 22 working days eachmonth except July, when the plant closes down for three weeks' vacation (leaving seven working days). Assume that total annualproduction capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand andannual capacity). (Leave no cells blank - be certain to enter "0" wherever required. Indicate monthly shortages using a negativeending inventory level. Round up the "number of workers" to the next whole number and round down your monthly "Availableproduction" values to the nearest whole number.) ForecastBeginning inventoryAvailable productionEnding inventoryLost salesInventoryTotalCostsJanuary February March April May405605805905605June July August305 205205September October November December Total305705805905Total

Manufacturing Cost -The costs associated with acquiring ingredients and turning them into finished…

vices have very fast access and large storage capacity. oney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause a verse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not the west-cost alternative. The forecast for the next 12 months is MONTH anuary ebruary arch pril ay une FORECAST DEMAND 605 805 905 605 405 305 MONTH July August September October November December FORECAST DEMAND 205 205 305 705 805 905 nufacturing cost is $220 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per mont dis assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $ unit short. e inventory on hand at the beginning of the planning period is 220 units. Twelve labor hours are required per DVD player. The kday is nine hours.

vices have very fast access and large storage capacity. oney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause a verse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not the west-cost alternative. The forecast for the next 12 months is MONTH anuary ebruary arch pril ay une FORECAST DEMAND 605 805 905 605 405 305 MONTH July August September October November December FORECAST DEMAND 205 205 305 705 805 905 nufacturing cost is $220 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per mont dis assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $ unit short. e inventory on hand at the beginning of the planning period is 220 units. Twelve labor hours are required per DVD player. The kday is nine hours.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A bicycle manufacturer currently produces 237,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2.20 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1.60 per chain. The necessary machinery would cost $293,000 and would be obsolete after 10 years. This investment could be depreciated to zero for tax purposes using a 10-year straight-line depreciation schedule. The plant manager estimates that the operation would require $44,000 of inventory and other working capital upfront (year 0), but argues that this sum can be ignored since it is recoverable at the end of the 10 years. Expected proceeds from scrapping the machinery after 10 years are $21,975. If the company pays tax at a rate of 35% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the…
FAE Technologies is deciding whether it should begin production of a new toy robot. It has manufactured children’s toys before but nothing as advanced as its latest robot so historical data is at a minimum. The company believes that they can secure the materials for manufacture for between $65-85 per unit and labor costs would be between $15-25 per unit. Management’s expectations are that materials will cost $70 per unit and labor $25 per unit and that 800 units will be sold monthly. Should FAE decide to manufacture the robots in-house, maintenance of the factory machine would cost $15,000 per month. However, management has found that another alternative is for the company to outsource the labor for a flat rate of $35 per unit. The company expects to sell between 750-1000 units per month initially at a price of $149. Provide recommendations for FAE technologies that will maximize profit. Also include base, worst, and best case scenario calculations and provide a scenario summary. Be…
A bicycle manufacturer currently produces 391,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2.10 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1.60 per chain. The necessary machinery would cost $292,000 and would be obsolete after ten years. This investment could be depreciated to zero for tax purposes using a ten-year straight-line depreciation schedule. The plant manager estimates that the operation would require $43,000 of inventory and other working capital upfront (year 0), but argues that this sum can be ignored since it is recoverable at the end of the ten years. Expected proceeds from scrapping the machinery after ten years are $21,900. If the company pays tax at a rate of 20% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the…
The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $5,600 a month, and two lines will mean a fixed cost of $9,520 a month. Each line would be able to process 15 cars an hour. Variable costs will be $3 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 280 hours a month.. Choose line
Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $200 selling price per unit. Its fixed costs for the year are expected to be $270,000. Variable costs for the year are expected to be $140 per unit. Required 1. Estimate Product XT's break-even point in terms of (a) sales units and (b) sales dollars. Check (10) Break-even sales, 4,500 units 2. Prepare a contribution margin income statement for Product XT at the break-even point.
Q1.Determine the production plan that will maximise the weekly profit of MJD Ltd and prepare a profit statement showing the profit your plan will yield. Q2.The marketing director of MJD Ltd is concerned about the company’s ability to meet the quantity demanded by its customers. Two alternative strategies are being considered to overcome this: To increase the number of hours worked using the existing machinery by working overtime. Such overtime would be paid at a premium of 50% above normal labour rates, and variable overheads costs would be expected to increase in proportion to labour costs. To buy product B from an overseas supplier at a cost of £19 per unit; which includes the cost of delivery. This purchased product would need to be repackaged at a cost of £1 per unit before it can be sold Evaluate each of the two alternative strategies and write a report to the marketing director discussing which strategy should be adopted.
Marketing manager suggests the company should sell CHANTEQ in both states as he is confident the market would be good. However, the direct material cost will increase by 10%. Advise the management on how many units to be sold for both states to maintain its annual profit.
FEX, a grocery store, is considering offering one-hour photo developing in their store. The firm expects that sales from the new one-hour machine will be $139,000 per year. FEX currently offers overnight film processing with annual sales of $90,000. While FEX expects that many of the one-hour photo sales will be to new customers, it also expects that most of the old customers will switch to the new one-hour machine. Specifically, FEX estimates that 75% of their current overnight photo customers will switch and use the one-hour service. Given these expectations, the level of incremental sales associated with introducing the new one hour photo service is closest to O $206,500 O $36,300 O $71,500 $139,000 O $121,800 O $94,800
An all-wood furniture manufacturer operates 8 hours per day for 340 days per year, and has a demand of 2,000 units per day. There are four production cycles per day. Assume the following: 7,700 units produced per day, holding cost per unit is $5 per year, labor rate to do line set-ups is $13 per hour. With quick set-ups, the production line must be quickly re-organized. What is the target set-up cost? Please round to two decimals and do not include a dollar sign. What is the set-up time in minutes? Please round to the nearest two decimals, and do not write the word "minutes" in your answer just enter your number with the two decimals.