Decision Analysis Task 1 Wgu

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

A project has been estimated to take six weeks and cost $130,000. Cost and percent complete data are provided in the table below through 3 weeks of the project. % scheduled data can be obtained from the Gantt chart following the table.

Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December 2012. Raw materials were requisitioned from the company’s inventory on December 2 for $5,061; on December 8 for $1,059; and on December 14 for $3,459. In each instance, twothirds (2/3) of these materials were for J57 and the rest for K52. Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $16.50 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52. The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2,112 hours, and the anticipated overhead costs are $840,576 for the year. The machine were used by workers on projects K52 and J57 on December 3, 9, and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project J57 (2.5 the first day and 3 each of the other days). Both of these special orders were completed on December 15, producing 237 sprinkler heads for J57 and 142 sprinkler heads for K52. Additional job order

4. Develop and diagram an Activity Based cost model using the information in the case Provide your best estimates about the cost and profitability of Wilkerson’s three product lines. What difference does your cost assignment have on operated product costs and profitability? What causes any shifts in cost and profitability?

Decision-making is critical to a business helping mitigate risk and requires good judgment, considering social, humans, and ethical values before final decisions are made. Additionally, making good decisions enables organizations to identify and resolve problems, also providing organizations with the ability to identify and exploit opportunities.

B.”Describe and estimate the incremental costs of the extra 200 pairs per week (from 1000 pairs

1. With the current production schedule it will cost $4,037.04 in labor to produce 5 batches of 10,000 sandals the first month. This is based on the 80% learning curve provided by Catherine Pang from past experience, which equated to a cumulative time of 3,738 hours at $1.08 per hour. The second month will cost $5,154.84 for 4,773 hours at $1.08 per hour. The third month $5,942.16 for 5,502 hours and the fourth month will cost $6,537.24 for 6,053 hours at $1.08 per hour. I would suggest that Shuzworld definitely continue with production of their new sandal line. As can be seen from the numbers above, the labor costs do not greatly increase with substantial increase in production numbers. This is due to ever increasing efficiency gained by workers through repetition of producing the same products. The Excel OM worksheet shows that efficiency increases to a point on the learning curve that basically levels off around the 50th batch which takes around 280 hours. As you can see that is a little over a quarter of the time required to produce the first batch, which took 1,000 hours.

1. A manufacturer produces 1,000 basketballs each day, which it sells to customers for $30 each. All costs associated with production and sales total $10,000; however, if the manufacturer were to produce one additional basketball per day, total costs would increase to $10,100. From these amounts, we can tell that

We have the given details like the objectives of making profit of $2.25 per yard for denim and $3.10 for yard of Corduroy and constraints of processing time of 3.2 hour for Corduroy and 3 for Denim, 6500 pounds of total cotton and 3000 hours of processing time and the demand is unlimited for Denim and 510 maximum for corduroy. By table above details,

Smith Manufacturing has 27,000 labour hours available for producing X and Y. Consider the following information: Product X Product Y Required labour time per unit (hours) 2 3 Maximum demand (units) 6,000 8,000 Contribution margin per unit $5.00 $6.00 If Smith wishes to maxmise their profit, which of the following production schedules should the company set? A. 8000 units of Product Y only B. 1500 units of Product X and 8000 units of Product Y C. 6000 units of Product X only D. 6000 units of Product X and 5000 units of Product Y 10. Car hire companies would be classified as:

In everyone's life, there comes a situation where a hard decision needs to be taken, the consequences of which can be, entirely, in your favor or can be against you. The situation of taking a risk is a time for a strict test and to get the success, you need to be firm in your decision, in all odds. There was one such situation in my life where I also had to take a firm decision for my career.

Using the sample data given in Table 2-20, make a recommendation for how many units of each style Wally should make during the initial phase of production. Assume that all of the 10 styles in the sample problem are made in Hong Kong and that Wally’s initial production commitment must be at least 10,000 units. Ignore price differences among styles in your initial analysis.

When one is thinking, he or she must think critically. Thinking critically means to think intelligently and thoroughly about the decision to be made. One must gather his or her thoughts with clarity, precision, accuracy, relevance, consistency, completeness, and/or fairness. With those particulars in mind during the thought process; an accurate answer and/or the most excellent decision will undoubtedly be made. The purpose of this paper is to find a decision-making model and to describe that model and apply that model to a recent job-related decision.

The research revealed that senior managers fail to see fact- and data-driven analysis as critical when making key business decisions and instead rely heavily on “gut feel” and “soft” factors such as consultation, intuition and experience. In essence, decision-makers revert to best guesses rather than making empirical decisions (Accenture, 2010).

On our first meeting with our sponsor, we were asked to do a cost analysis to determine what is the lowest price that the company can charge for each style and when would they break even. Since the company had taken reserves on almost all the shoe styles for Dr. Comfort, we had to determine the net inventory after the reserves. To accomplish this task, we created an excel worksheet that lists all the items that have been assigned a percentage of reserves (Please refer to the worksheet in Appendix).