Concept explainers
A
Interpretation:The number of cans of each type of product that should be produced to maximize the revenue should be calculated.
Concept Introduction: The company produces three types of units that contain − Walnuts, Almonds and Peanuts. The current stock of nuts the company holding is 350 pounds of Almonds, 150 pounds of Walnuts and 1000 pounds of Peanuts.
B
Interpretation:The changes seen if the company is interested in maximizing its contribution margin should be concluded.
Concept Introduction: The company produces three types of units that contain − Walnuts, Almonds and Peanuts. The current stock of nuts the company holding is 350 pounds of Almonds, 150 pounds of Walnuts and 1000 pounds of Peanuts.
C
Interpretation:The change seen in the production level, if there are 50 additional pounds of Walnuts are available should be concluded.
Concept Introduction: The company produces three types of units that contain − Walnuts, Almonds and Peanuts. The current stock of nuts the company holding is 350 pounds of Almonds, 150 pounds of Walnuts and 1000 pounds of Peanuts.
Want to see the full answer?
Check out a sample textbook solutionChapter D Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
- (a) Determine the amount of potatoes and green beans Maria should purchase each week for the casserole to minimize the ingredient costs while meeting nutritional, taste, and demand requirements. Before she makes her final decision, Maria plans to explore the following questions independently except where otherwise indicated. (b) Maria is not very concerned about the taste of the casserole; she is only concerned about meeting nutritional requirements and cutting costs. She therefore forces Edson to change the recipe to allow for only at least a one to two ratio in the weight of potatoes to green beans. Given the new recipe, determine the amount of potatoes and green beans Maria should purchase each week. (c) Maria decides to lower the iron requirement to 65 mg since she determines that the other ingredients, such as the onions and cream of mushroom soup, also provide iron. Determine the amount of potatoes and green beans Maria should purchase each week given this new iron…arrow_forwardd) A company can produce three products A, B and C. the products yield a contribution of Kshs.8, 5 and 10 respectively. The products use a machine which has 400 hours capacity. Each unit of the product uses 2, 3 and 1 hour respectively of the machines capacity. There are only 150 units available in the period of a special component which is used singly in product A and C. Only 200kgs of a special alloy is available in the period. The usage of special alloy is 2kgs per unit and 4kgs per unit respectively. There is an agreement with a trade association to produce no more than 50 units of product B in the period. Advise the company on the production plan that will maximize contribution.arrow_forwardBimala is interested in buying a new house and has found a house she likes in Surry Hills. Bimala comes to you for advice about which of the following items would pass to her automatically if she buys the house: • A plastic bird bath which rest on the ground in the back garden; • A concrete swimming pool in the back garden; • A tapestry attached by small tapestry nails to the wall of the living room; and • A barbecue on wheels on the back deck. Advise Bimala. In your advice, please ensure that you refer to relevant case law. *NOTE: This is business law question. can you write more details about the question and answer.arrow_forward
- 14. Digital Controls, Inc. (DCI) manufactures two models of a radar gun used by police to mon- itor the speed of automobiles. Model A has an accuracy of plus or minus 1 mile per hour, whereas the smaller model B has an accuracy of plus or minus 3 miles per hour. For the next week, the company has orders for 100 units of model A and 150 units of model B. Although DCI purchases all the electronic components used in both models, the plastic cases for both models are manufactured at a DCI plant in Newark, New Jersey. Each model A case re- quires 4 minutes of injection-molding time and 6 minutes of assembly time. Each model B case requires 3 minutes of injection-molding time and 8 minutes of assembly time. For next week the Newark plant has 600 minutes of injection-molding time available and 1080 min- utes of assembly time available. The manufacturing cost is $10 per case for model A and $6 per case for model B. Depending upon demand and the time available at the Newark plant, DCI…arrow_forwardAt an Oxford grocery store, the manager Jenny Produce buys lettuce each day to ensure really fresh produce. In her focus on quality, each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week Jenny can buy fresh lettuce for $10.00 a box. The lettuce is sold for $22.00 a box and the dealer that sells old lettuce is willing to pay $2.00 a box. Past history says that tomorrow's demand for lettuce averages 270 boxes with a standard deviation of 44 boxes. How many boxes of lettuce should Jenny purchase tomorrow? (Use Excel's NORMSINV() function to find the Z-score. Round intermediate calculations to four decimal places. Round your answer to the nearest whole number.) I have asked this 3 times and nobody has got it right.arrow_forwardThe Marketing Manager of Dotcom Limited has conducted a market research on the price-demand relationship for its consumer durable Product-V which has been recently launched. The price-demand pattern will be as follows: Price per unit (Rs.) 16.650 16.050 14.400 13.050 Product-V is manufactured in batches of 1.000 units. The production manager of Dotcom Limited has also researched and studies the pattern and believes that 50% of the variable manufacturing cost would have a learning effect. This learning curve effect will continue up to 4.000 units of production at constant rate But after 4.000 units of production unit variable manufacturing cost would be equal to the unit cost at the 4 batch. The manufacturing unit cost of the first batch will be Rs. 6.600 of which only 50% is subjected to learning and experience curve effect. The average unit variable of all 4 batches will be Rs 6.180 The price and maximum contribution at which Dotcom Limited should sell Product-V is: Rs.14,400, Rs.…arrow_forward
- 5. Meg Jones, the CEO of Ajax Computer Company, and Brad Smith, its Director of Operations, had been discussing how to increase the firm’s production of the company’s flagship XR58. The XR58 was particularly important because it sold 12,500 of them in the most recent year for $950, at a gross margin of 55%. After a lot of discussion, they decided to pursue an incentive system designed to increase production by 12% in the next year. After Brad discussed this possible incentive with the production team, the team determined that it could increase production by this amount without adding any more people or equipment. They believed they could accomplish this improvement primarily through process redesign. To incent them to do the hard work of process improvement, Brad told the team that it would receive 25% of the increased profits if it met the new production goal. For this team of 20 people, this would mean an additional compensation of _________ for each team member, on average, for…arrow_forwardRead the images below and asnwer the questions: 6- What is the maximum amount they should be willing to pay for procuring each pound of this ingredient? 7- If the vendor of Oats increases the per pound price by $0.75, would you recommend the company reduce the use of Oats in making the mix in order to minimize their cost? Group of answer choices a- Yes b- No c- Not enough information to answer the question 8- If the vendor of Soybean increases the per pound price by $0.75, would you recommend the company reduce the use of Soybean in making the mix in order to minimize their cost? Group of answer choices a- Yes b- No c- Not enough information to answer the question 9- If the vendor of Oats offers to supply you Oats for Free(!), would/could you possibly increase the amount of Oats you use to make the mix in order to reduce the cost of the mix? Group of answer choices a- Yes b- No c- Not enough information to answer the question 10- If the Vitamin becomes…arrow_forwardElsa Corporation, a company that manufactures and markets low-end table computers, asked ourfriend Ms. Market Researcher to create the demand curve for its SD 721 model. She conductedsome market research and gave Elsa the demand curve as well as some additional information:350,000 units of SD 721 will sell at a price of $250.(1) What is the point price elasticity if 500,000 units will sell at a price of $200? (2) What is the point price elasticity if 125,000 units will sell at a price of $305?arrow_forward
- Which of the following should NOT be included in the analysis of a new product? 1. money already spent for research and development of the new product II. reduction in sales for a current product once the new product is introduced III. increase in accounts receivable needed to finance sales of the new product IV. market value of a machine owned by the firm which will be used to produce the new product V. $1,000,000 the company spent 5 years ago to buy a machine which will be used to produce the new product I and III QI and V II, III, and IV I, II, and IVarrow_forwardUsing the 1st law of Thermodynamics solve the following problem and the format of the answer is as follow a.) given:b) required:c solution : The 2M Company supplies 50 kilograms of chicken to ABEst Restaurant, which is contained in a box at 6°C, and is to be frozen at-18°C. The container box is 1.5 kg and the specific heat of the box material is 1.4 kJ/kg-°C. The freezing temperature of chicken is -2.8 °C. Determine the amount of heat that needs to be removedarrow_forwardWhat is the purpose of the SCOR Model and what are the five basic functions of the SCOR Model?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,