33 White & Becker Tools (W&B) requires 2,000 elec-tric motors next month for its product line of weedtrimmers. Each motor is composed of three com-ponents: a coil, a shaft, and housing. W&B has thecapability to produce these components or purchasethem from an outside vendor. The costs of produc-ing them and purchasing them are shown in thefollowing table.COMPONENTCoilShaftHousingDEPART-MENTPRODUCTIONCOST PER UNITFabrication 0.5Molding0.4Inspection 0.2$2.60$1.80$1.40The components that are produced by W&Bmust pass through three departments: fabrication,molding, and inspection. The number of hours eachcomponent requires in each department and thetotal number of hours available next month in eachdepartment are shown in the following table:0.20.70.3PURCHASECOST PER UNITCOIL SHAFT HOUSING AVAILABILITY(HR.) (HR.)(HR.)(HR.)$3.12$2.16$1.680.60.30.43,0003,0001,800In order to determine the number of componentsthat will be produced and the number that will bepurchased, W&B has set the following goals, inrank order:Rank 1: The total costs to produce and purchasecomponents next month should not exceed$14,000.Rank 2: Idle time in the fabrication departmentshould be minimized.Rank 3: At least 200 coils should be purchased fromthe vendor next month.Determine the number of components produced andpurchased next month, according to these rankedgoals.

Answered: Image /qna-images/answer/cc01f778-8d86-4229-9bfa-ea4863a1e4c5.jpg

Answered: White & Becker Tools (W&B) requires…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Borges Machine Shop, Inc., has a 1-year contract for the production of 225,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 225,000 $125,000 $18.00 The option GPE is best when the contracted volume is below Flexible Manufacturing System (FMS) Dedicated Machine (DM) 225,000 $500,000 $13.00 225,000 $200,000 $14.00 ☐ units (enter your response as a whole number).
When selecting date units for grouping, users can select multiple units of measure. True False
The following table provides a random sample of the unit values and annual demands of eight SKUs. SKU Code Unit Value Demand (units) A104 $0.02 D205 $2.60 X104 $4.80 U404 $2.50 L205 $0.36 S104 $0.84 X205 $4.35 L104 $0.23 4,500 30 25 2,500 1,040 380 70 250 Southern Markets Inc. is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. a. Based on the percentage of dollar usage, which class should L205 belong to? Class b. Based on the percentage of dollar usage, which class should L104 belong to? Class
Dana’s Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette $ 2.00 Sales price per rosette $ 6.00 Total fixed costs per month $ 6000.00 Required: 1. Suppose Dana’s would like to generate a profit of $1,120. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana’s sells 2,140 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. 3. Calculate Dana’s degree of operating leverage if it sells 2,140 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana’s profit if unit sales drop to 1,819 units. 4b. Prepare a new contribution margin income statement to verify change in dana's profit.
The fixed and the variable costs to produce an item are given along with the price at which an item is sold. How many items must be sold to breal-even? Fixed cost: $330,000 Variable cost per item: $5 Price at which the item is sold: $60
What are the advantages of a mixed-model line over a batch-model line for producing different product styles?
Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in Houston and Tulsa, and consider new plants in Portland, St. Louis and Lexington. Finished control panels are to be shipped to Denver, Kansas City and Seattle. Pertinent information is given in the table. Denver 1 1- 2- 3- Sources 4- 5- Houston Tulsa Portland Construction St. Louis Cost Kansas City 2 ---- 1 Shipping Cost to Destination: Capacity Seattle 3 6 6 500,000 450,000 Lexington 400,000 Demand 14,000 13,000 18,000 We develop a transportation model as an LP that includes provisions for the fixed costs (construction costs in this case) for the three new plants. The solution of this model would reveal which plants to build and the optimal shipping schedule. Let xij = the number of panels shipped from source i to destination j y₁ = 1 if plant i is built, = 0 otherwise (i = 3, 4, 5) The constraint x21 + x22+x23 <= 13,000*y3 represents which of the…
3-44 CVP analysis. The Germa company produces two products, Spick and Span, on one machine. Spick and Span cannot be made simultaneously. There is no time required to adjust the machine when switching from one product to the other. One unit of Spick requires 2 machine hours to produce, whereas one unit of Span requires 4 hours. The normal occupation of the machine is 6,000 hours per year. The fixed costs of the machine are $120,000 annually. One unit of Spick needs 2 kg of material A, whereas one unit of Span requires 3 kg. The budgeted price for 1 kg of material A is $4. The sales costs consist only of fixed costs, which are budgeted at $40,000 a year. The allocated fixed sales costs per product are $20. 1. Calculate the cost per product for Spick and Span. The selling price for Spick is $70 and for Span it is $120. 2. Calculate the breakeven revenue when 50% of the units sold are Spick and 50% are Span. 3. When material shortage causes a bottleneck, which product should be produced…
Knott's Berry Farm is contemplating buying a new van for its operations. The farm's engineering staff has researched the market and found 2 units that appear to meet their requirements. Truck # 1 has a cost of $37,000 and requires an annual maintenance cost of $2,700. At the end of its useful life (3 years), it is projected to have a salvage value of $5,000. On the other hand, Truck #2 has an initial cost of $40,000 and requires only $2,000 in annual operating costs because the manufacturer is claiming that some routine maintenance is covered in the price of the truck. Truck # 2 has an estimated salvage value of $8,000 at the end of its 4 year service life. The CEO has determined that the farm's MARR is 12%. The trucks are needed for 12 years according to the 2024 Strategic Plan. The Engineering Department has determined that no significant changes are needed in the future that would change prices and functional characteristics of each truck. As a member of the Engineering Department,…
The Colonial House Furniture Company manufactures two
Need both parts
GMPs are a combination of manufacturing and management practices aimed at ensuring that food products are consistently produced to meet specifications and customer expectations. GMPs requirements related to the design and layout of food plants include: • Single-floor versus multistory buildings • Land space for future expansion• Waste disposal • Building details (drainage, doors, lighting,ventilation, plumbing) how can we apply GMPs into yogurt manufacturer

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS