Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Textbook Question
Chapter 13, Problem 10E
Refer to Exercise 13.9. Assume that the company identifies poor plant layout as the root cause of wait time and move time.
Required:
- 1. Express an improvement strategy as a series of if-then statements that will reduce the conversion cost per laptop.
- 2. Assume that you set an MCE target of 75 percent, based on the improvement strategy described in Requirement 1. What is the expected conversion cost per unit? Explain how you can use these targets to test the viability of your quality improvement strategy.
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1. Compute the annual net cost savings promised by the automated welding machine.
2a. Using the data from (1) above and other data from the problem, compute the automated welding machine’s net present value.
2b. Would you recommend purchasing the automated welding machine?
3. Assume that management can identify several intangible benefits associated with the automated welding machine, including greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result of reduced throughput time. What minimum dollar value per year would management have to attach to these intangible benefits in order to make the new welding machine an acceptable investment?
What is the answers using solver on excel:
Burger Office Equipment produces two types of desks, standard and deluxe. Deluxe desks have oak tops and more expensive hardware and require additional time for finishing and polishing. After reviewing the hardware and labor required
along with the profit for each model, Burger Office Equipment found the following linear optimization model for profit, where S is the number of standard desks produced and D is the number of deluxe desks produced. Implement the linear
optimization model on a spreadsheet and use Solver to find an optimal solution. Interpret the optimal solution, identify the binding constraints, and verify the values of the slack variables.
Maximize Profit=240 S+350 D
65 S+45 D≤6000
20 D≤ 800
(Availability of pine)
9 S+18 D≤500
S≥0 and D≥0
(Availability of oak)
(Availability of labor)
Implement the linear optimization model and find an optimal solution. Interpret the optimal solution.
The optimal solution is to produce
standard desks and
deluxe desks. This solution gives…
Chapter 13 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 13 - Describe a strategic-based responsibility...Ch. 13 - What is a Balanced Scorecard?Ch. 13 - What is meant by balanced measures?Ch. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - What are stretch targets? What is their strategic...Ch. 13 - Prob. 7DQCh. 13 - What are the three strategic themes of the...Ch. 13 - Prob. 9DQCh. 13 - Explain what is meant by the long wave and the...
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - What is a testable strategy?Ch. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Norton Company has the following data for one of...Ch. 13 - Craig, Inc., has provided the following...Ch. 13 - Prob. 3CECh. 13 - The following comment was made by the CEO of a...Ch. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Consider the following list of scorecard measures:...Ch. 13 - Hatch Manufacturing produces multiple machine...Ch. 13 - Computador has a manufacturing plant in Des Moines...Ch. 13 - Refer to Exercise 13.9. Assume that the company...Ch. 13 - The following if-then statements were taken from a...Ch. 13 - Consider the following quality improvement...Ch. 13 - Bannister Company, an electronics firm, buys...Ch. 13 - Prob. 14ECh. 13 - In a balanced scorecard, a key strategic if-then...Ch. 13 - Which of the following objectives would be...Ch. 13 - A manufacturing cell produces 40 units in five...Ch. 13 - Which of the following objectives would likely be...Ch. 13 - Which of the following objectives would likely be...Ch. 13 - Carson Wellington, president of Mallory Plastics,...Ch. 13 - At the end of 20x1, Mejorar Company implemented a...Ch. 13 - Refer to the data in Problem 13.21. 1. Express...Ch. 13 - The following strategic objectives have been...Ch. 13 - Lander Parts, Inc., produces various automobile...Ch. 13 - Auflegger, Inc., manufactures a product that...Ch. 13 - Prob. 26PCh. 13 - At the beginning of the last quarter of 20x1,...
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