1.
Decision making on purchase of gray cloth.
Given information:
Additional rolls purchased are 5,000 rolls.
Selling price per roll is $1,800 per roll.
Cost per roll of gray cloth is $1,800.
Variable cost of printing per roll is $200.
2.
Decision making on implementation of scrap reduction program.
Given information:
Output of weaving department is 9,500 rolls.
Reduction in scrap is 4%.
Selling price per roll is $2,500 per roll.
3.
Decision making on implementation of scrap reduction program.
Given information:
Reduction in production defects is 2%.
Scrap in printing department is 10%.
Incremental cost of scrap deduction is $700,000.
Variable cost of printing per roll is $300.
Selling price per roll is $2,800 per roll.
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