Whether person M should purchase or make the component parts. Introduction: The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Question

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Answer 1

Question

Chapter 6, Problem 12P

a)

Summary Introduction

To determine: Whether person M should purchase or make the component parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

b)

Summary Introduction

To determine: Whether the person M should make the component in-house, buy it from the new supplier, or stick with the old supplier

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

c)

Summary Introduction

To determine: Whether the decision will change when there is an increase in the demand to 2000 parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

d)

Summary Introduction

To determine: The set of rules that person M can use to decide whether to make this component, when to buy it from the old supplier, and when to buy it from the new supplier.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

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Prevar Corporation currently purchases components from one of its suppliers. The current purchase price is $1500 per component, with annual purchase volume of 750 units. The ops manager believes that this component could be made inhouse with some minor modifications to the current factory set up. Fixed cost for dedicating a line for this component is estimated at $50,000. Raw materials for the component is estimated at $900, overhead at $200 and it would take 10 hours of labor (at $20 per hour) to produce each component.

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Jupiter Game Company manufactures pocket electronic games. Last year Jupiter sold 25,000 games at $25 each. Total costs amounted to $525,000, of which $150,000 were considered fixed costs. In an attempt to improve its product, the company is considering replacing a component part that has a cost of $2.50 with a new and better part costing $4.50 per unit in the coming year. A new machine also would be needed to increase plant capacity. The machine would cost $18,000 with a useful life of six years and no salvage value. The company uses straight-line depreciation on all plant assets. (Ignore income taxes). 1) If management holds the sales price constant and makes the suggested changes, how many units of product must be sold in the coming year to break even?

Answer 2

Question

Chapter 6, Problem 12P

a)

Summary Introduction

To determine: Whether person M should purchase or make the component parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

b)

Summary Introduction

To determine: Whether the person M should make the component in-house, buy it from the new supplier, or stick with the old supplier

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

c)

Summary Introduction

To determine: Whether the decision will change when there is an increase in the demand to 2000 parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

d)

Summary Introduction

To determine: The set of rules that person M can use to decide whether to make this component, when to buy it from the old supplier, and when to buy it from the new supplier.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

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Answer 3

Question

Chapter 6, Problem 12P

a)

Summary Introduction

To determine: Whether person M should purchase or make the component parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

b)

Summary Introduction

To determine: Whether the person M should make the component in-house, buy it from the new supplier, or stick with the old supplier

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

c)

Summary Introduction

To determine: Whether the decision will change when there is an increase in the demand to 2000 parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

d)

Summary Introduction

To determine: The set of rules that person M can use to decide whether to make this component, when to buy it from the old supplier, and when to buy it from the new supplier.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

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Answer 4

Question

Chapter 6, Problem 12P

a)

Summary Introduction

To determine: Whether person M should purchase or make the component parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

b)

Summary Introduction

To determine: Whether the person M should make the component in-house, buy it from the new supplier, or stick with the old supplier

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

c)

Summary Introduction

To determine: Whether the decision will change when there is an increase in the demand to 2000 parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

d)

Summary Introduction

To determine: The set of rules that person M can use to decide whether to make this component, when to buy it from the old supplier, and when to buy it from the new supplier.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 12P

a)

Summary Introduction

To determine: Whether person M should purchase or make the component parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

b)

Summary Introduction

To determine: Whether the person M should make the component in-house, buy it from the new supplier, or stick with the old supplier

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

c)

Summary Introduction

To determine: Whether the decision will change when there is an increase in the demand to 2000 parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

d)

Summary Introduction

To determine: The set of rules that person M can use to decide whether to make this component, when to buy it from the old supplier, and when to buy it from the new supplier.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 6

Chapter 6, Problem 12P

a)

Summary Introduction

To determine: Whether person M should purchase or make the component parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 7

Chapter 6, Problem 12P

a)

Summary Introduction

To determine: Whether person M should purchase or make the component parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 8

b)

Summary Introduction

To determine: Whether the person M should make the component in-house, buy it from the new supplier, or stick with the old supplier

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 9

b)

Summary Introduction

To determine: Whether the person M should make the component in-house, buy it from the new supplier, or stick with the old supplier

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 10

c)

Summary Introduction

To determine: Whether the decision will change when there is an increase in the demand to 2000 parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 11

c)

Summary Introduction

To determine: Whether the decision will change when there is an increase in the demand to 2000 parts.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 12

d)

Summary Introduction

To determine: The set of rules that person M can use to decide whether to make this component, when to buy it from the old supplier, and when to buy it from the new supplier.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 13

d)

Summary Introduction

To determine: The set of rules that person M can use to decide whether to make this component, when to buy it from the old supplier, and when to buy it from the new supplier.

Introduction:

The way in which the production of a product takes place or a service is provided to the consumers is known as process planning. It helps in determining from where the components of production will be arranged. The process planning also helps in documentation and development of specification for manufacturing and delivery purpose.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 6 - Prob. 1.1ASC Ch. 6 - Prob. 1.2ASC Ch. 6 - Prob. 1.3ASC Ch. 6 - Discuss the types of decisions that are involved...Ch. 6 - Prob. 2Q Ch. 6 - Describe the four basic types of production...Ch. 6 - What are the major cost factors considered in...Ch. 6 - What kind of information do the following...Ch. 6 - What does process planning entail? How would...Ch. 6 - Explain the basic steps involved in process...

Solution Summary: The author explains that process planning helps in determining from where the components of production will be arranged.

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Chapter 6 Solutions