Concept explainers
a)
To create: A one-way SolverTable for the steel available.
Introduction: The variation between the present value of the
b)
To create: A one-way SolverTable for the labor hours available.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
c)
To create: A one-way SolverTable for the unit profit contribution of large minivans.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
d)
To create: A one-way SolverTable for the minimum production level of large minivans.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
e)
To create: A one-way SolverTable for the minimum production level of compact cars.
Introduction: The variation between the present value of the cash outflows and the present value of the cash inflows are known as the Net Present Value (NPV).
Trending nowThis is a popular solution!
Chapter 6 Solutions
Practical Management Science
- Digital Imaging has hired your Analytics Consulting Firm (SJU Analytics) to help determine how many units of each printer they should produce to maximize profit. Construct a Simple Linear Programing Analysis using Excel SOLVER Prepare a presentation to DI’s president presenting your findings and recommendations. Digital Imaging’s Leadership team has providing the following information: Digital Imaging (DI) produces color printers for both the professional and consumer markets. The DI consumer division recently introduced two new color printers. The DI-910 model can produce a borderless color print in approximately 37 seconds. The more sophisticated and faster DI-950 can even produce a borderless color print. Financial projections show profit contributions of $42 for each DI-910 and $87 for each DI-950. The printers are assembled, tested, and packaged at DI’s plant located in New Bern, North Carolina. This plant is highly automated and uses two manufacturing lines to produce the…arrow_forwardCollege Creations, Inc (CC), builds a loft that is easily adaptable to most dorm rooms or apartments and can be assembled into a variety of configurations. Each loft is sold for $500, and the cost to produce one loft is $300, including all parts and labor. CC has fixed costs of $100,000. A.What happens if CC produces nothing? B.Now, assume CC produces and sells one unit (loft). What are their financial results? C.Now, what do you think would happen if they produced and sold 501 units? D.How many units would CC need to sell in order to break even? E.How many units would CC need to sell if they wanted to have a pretax profit of $50,000?arrow_forwardMaterials Management $12.00 per purchase order Chemical Processing $7.50 per metric ton Molding $24.00 per direct labor hour Packaging $0.10 per unit Engineering designs show that the order will require direct materials that cost $540; direct labor cost will be $90. The order will require four purchas orders to be placed, use two metric tons of chemical base, and need eight direct labor hours. The size of the order is to produce 3,000 units of product. How to calculate the total production of the order?arrow_forward
- Thank you for your help!!arrow_forwardTwo machines A and B produce items at the rate of 50 units per hour and 40 units per hour respectively. Under certain production plans, the total number of items needed is at least 1000 items, the total number of hours available for running the machines is atmost 24 hours. If the hourly cost is P300 for machine A and P250 for machine B, how many hours should each machine be used in order to minimize the cost? What is the minimum cost? Use either graphical method or simplex methodarrow_forwardThe Johnny Ho Manufact uring Company in Columbus, Ohio, is putting out four new electronic components. Each of Ho's four plants has the capacity to add one more productto its current line of electronic parts. The unit-manufacturing costs for producing the different parts at the four plants are shown in the accompanying table. How should Ho assign the new products to the plants to minimize manufacturing costs?arrow_forward
- Company DEF has a choice of two machines to purchase. They both make the same product which sells for P10. Machine A has FC of P5,000 and a per unit cost of P5. Machine B has FC of P15,000 and a per unit cost of P1. Under what conditions would you select Machine A?arrow_forwardAndy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass-producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be $25,000, whereas labor, material, packaging, and shipping will be about $10 per doll. If the dolls are sold for $30 each, what sales volume is necessary for Andy to break even?arrow_forwardJuliette loves to eat ice cream and spends a fortune each week buying it. In an effort to save money, she is considering making her own ice cream at home. The cost of an ice cream maker is $150 and the cost of ingredients is $6 for each 1.5 L batch. The cost of the same 1.5 L is $10 at the store. If she eats three litres of ice cream per month, will she save money by making her favourite treat at home? Assume the ice cream maker has a one-year warrant and breaks immediatelv after.arrow_forward
- Information on a business is given below.Variable Expenses:Raw material expense: 250 TL / pieceAuxiliary equipment expense: 150 TL / pieceElectricity expenses: 100 TL / pieceSpare parts expense: 75 TL / pieceOther variable expenses: 125 TL / pieceFixed costs:Depreciation, interest and insurance expenses: 75 000 TLLabor and personnel expenses: 250 000 TLOther fixed expenses: 115 000 TLProduction capacity: 2000 pcs / monthSale price: 1600 TL / pieceAccording to the above,a) Find the break-even point as the production quantity?b) Find the amount that the business has to produce in order to make a profit of 500 000 TL / month?arrow_forwardA machine shop has an order for 12 000 pcs of a machine part that requires anti-corrosive properties. Chromium steel alloy that cost Php. 95.00/kg or Nickel steel alloy that cost Php. 65.00/kg may be used. The weight per piece, production rate per day and tool bit replacement cost for Cr-alloy are: 0.25 kg, 75 pcs and Php. 1 600.00 for every 400 pcs produced. The respective date for Ni-alloy are 0.3 kg, 50 pcs and Php. 1 800.00 for every 300 pcs produced. If the charge for the labor and other operating cost is Php. 450.00/day, with all other expenses being the same, determine which material should be used.arrow_forwardConsider the following costs of Zula Ltd over the relevant range of 5 000 to 2 0000 units produced.Units produced 5 000 10 000 15 000 20 000Variable cost $200 000 ? ? ?Fixed cost $1 800 000 ? ? ?Total ? ? ? ?Cost per unitVariable cost ? ? ? ?Fixed cost ? ? ? ?Total ? ? ? ?RequiredComplete the above tablearrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.