Assume that you work for an airline unloading luggage from airplanes. Your boss has said that, on average, each airplane contains 100 pieces of luggage. Furthermore, your boss has stated that you should be able to unload 100 pieces of luggage from an airplane in 10 minutes. Today an airplane arrived with 150 pieces of luggage and you unloaded all of it in 13 minutes. After finishing with the 150 pieces of luggage, your boss yelled at you for exceeding the 10 minute allowance for unloading luggage from an airplane.
Required:
How would you feel about being yelled at for taking 13 minutes to unload 150 pieces of luggage? How does this scenario relate to the larger issue of how companies design
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MANAGERIAL ACCOUNTING TEXT ONLY CUSTOM
- General Accountingarrow_forwardFinancial Accounting Questionarrow_forwardFlorida Kitchens produces high-end cooking ranges. The costs to manufacture and market the ranges at the company’s volume of 3,000 units per quarter are shown in the following table: Unit manufacturing costs Variable costs $ 1,440 Fixed overhead 720 Total unit manufacturing costs $ 2,160 Unit nonmanufacturing costs Variable 360 Fixed 840 Total unit nonmanufacturing costs 1,200 Total unit costs $ 3,360 The company has the capacity to produce 3,000 units per quarter and always operates at full capacity. The ranges sell for $4,000 per unit. Required: a. Florida Kitchens receives a proposal from an outside contractor, Burns Electric, who will manufacture 1,200 of the 3,000 ranges per quarter and ship them directly to Florida’s customers as orders are received from the sales office at Florida. Florida would provide the materials for the ranges, but Burns would assemble, box, and ship the ranges. The variable manufacturing costs would be…arrow_forward
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