Case Study Catawba Industrial Company

Catherine Pang presented her estimates on the new service line. She predicts that the first batch will take 1,000 labor hours to produce the first units of

Selling, general and administrative expenses were assumed to stay a constant 8.36% of sales to align with 2009 figures. The one time advertising outflow in 2011 and initial purchase of the plant and

Ques 1: Draw a detailed process flow map of the current process at receiving Plant#1. What is the capacity of each operation in the process?

The objective of this message is to appraise testimony refined by PowerCo's economists in order to establish the apparent profit or loss which could result from developing a cutting edge power generator. Considering the ever increasing demand for electricity, the present power plant can effectively supply electricity in the next 10-12 years. Therefore, a proposal has been put forward and this report will be aimed at determining whether the novel power generator is supposed to be developed.

Capacity is the maximum amount capable of producing. Another why to expand the capacity is to consider outsourcing. Outsourcing would come into play when they cannot set up the equipment and they need to produce product to satisfy an order. Some things to consider are the cost of making the product, such as labor, raw materials, and overhead.

4000bbl/day x 1 yr/365 days x 5.8x106 Btu/ 1bbl x 1 gal gas/1.24 x 105 Btu = 6.83 x 107 gal gas

Only in the stitching section there are inventories between different groups’ work. If the company still keeps each batch’s size as 100 pairs, the average work load for each worker in work group 1 now is 25 pairs, but in work group 2 is only 20 pairs which means that there will be 5 pairs of shoes as inventories from work shop 1 to work shop 2 in the stitching section.

2. At a steady state we'd be able to produce 6 (process capacity) x 4 (hours) = 24 dozen per night. At a starting state, assuming that 1st dozen takes 26 minutes, and we move into a steady state of production, we

parts. On a “good day” level of production, Hilcrest will reject 65 tubes per shift, resulting 650

3. What weekly production plan for standard and light weight compressors would result in the highest financial return for Catawba?

ii.       Production capacity = 480 / 0.5 = 960 units per day @ continuous 100% utilization

The total number of units that has to be produced is 200 in which 100 should be produced during the first 12 months. The remaining 100 units would be produced and delivered in two bits of 5o units each and would be produced at 3-motnth intervals.

In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated?

The job requires four months to complete, with 10, 12, 14 and 8 trucks needed in months 1 through 4, respectively.

| This fits our production system adequately. Since our assumed working cycle time is 6sec(=10 cycles/min) and it meets the requirement of 1300cars/day. On the other side, this is capital intensive but not as expensive as the first one.