Linear Solution

Q5: What is the total unit cost and per unit profit for 1 kg of "complete male" at a retail price of Cr. 6,85 and with an allocation of cr. 1.20 for production fixed expenses?

B. 1. The impact of costs on the decision to move forward with the new Maui Sandal line is as follows: As the production continues, the hours needed for each batch, or individual pair, will begin to decrease. By continuing to produce this line the total labor costs will continue to decrease, but most likely, at a slower rate as more sandals are produced. This data can help the company decide employment levels, capacity, costs, and their pricing of this particular merchandise in the open market. The company predicts that it will take 1,000 labor hours for production to complete for the first batch, with 50 total batches between month 1 and month 4.

blending labor). If you divide the total cost of $68,094 by the volume produced from a batch, 169,088oz, you

In January, Reyes Tool & Dye requisitions raw materials for production as follows: Job 1 $960, Job 2 $1,630, Job 3 $720, and general factory use $680. During January, time tickets show that the factory labor of $6,100 was used as follows: Job 1 $1,570, Job 2 $1,940 Job 3 $1,670, and general factory use $920. Prepare the job cost sheets for each of the three jobs. (If answer is zero, please enter 0, do not leave any fields blank.) Job 1 Date 1/31 1/31 Direct Materials 960 0 Job 2 Date 1/31 1/31 Direct Materials 1630 0 Job 3 Date 1/31 1/31 Direct Materials 720 0 0 1670 Direct Labor 0 1,940 Direct Labor 0 1570 Direct Labor

Question 12 Refer to the data in Question 11. The profit maximizing level of output is (a) 2 units (b) 3 units (c) 4 units (d) 5 units

* Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.)

1) a. Sheen should stock the optimal stocking quantity in this situation, which is 584 newspapers. The expected profit at this stocking quantity is $331.44. b. Q= µ+Φ-1(Cu/(Cu+C0))δ Q=500+ Φ-1(.8/(.2+.8))100 Q=500+(..7881)(100) Q=579 This is off by 5 newspapers from the model given in the spreadsheet, which results in a $.03 difference in profits. 2) a. With the opportunity cost of her time per hour being equal to $10, Sheen should invest 4 hours daily into the creation of the profile section. This would raise here optimal stocking quantity to 685 newspapers and would increase her expected daily profit to $371.33. b. Sheen’s choice of effort level, h, to be 4 hours was chosen because, in order to maximize profit, she would need an effort

The firm initially produces where MR=MC charging price P1 and quantity Qa. At this price the firm has a large amount of

Hannon Company expects to produce 1,200,000 units of Product XX in 2010. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Complete the flexible manufacturing budget for the relevant range value using 20,000 unit increments.

Alex Rogo was tasked with a very difficult job by his superior, Mr. Peach. He had to get the production plant efficient and profitable or it would be closed in three months due to poor results. Lucky for Alex, he enlisted the help of his old physics professor, Jonah. Through Jonah’s advice to Alex, we are able to see the different methods used under the theory of constraints.

2) Assume that the shadow price of a non-binding "≤" constraint is 5. This implies that:

Abby Conroy was tasked with calculating an effective quote for Breeland Ltd., she chose the activity based accounting costing system since it more accurately captures the related costs. A special order was placed by Breeland Ltd. with Ace Fertilizer Company. The did not plan to order more of this product in the future. Based on Ace’s policy, the special order included disposal costs for any used materials in the event no other orders existed for the unused materials at the time the Breeland contract was signed. Abby correctly calculated the total direct material and labor costs and accurately arrived at the indirect costs using the ABC method and used cost activity pools that make sense for the company and

7. Though numbers given in the cost data can not be contested, I would definitely contest the way total cost has been computed. The item 345 department operates within a large manufacturing facility that churns out number of other products too. Hence judging the profitability of item 345 on the basis of total cost is not practical.

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.

This method did not account for any specific cost arising from the complexity, diversity or other production related specifics of the product line. In contrary, the time-driven ABC approach does account for all the nuances of each product line. From the table can also be inferred that the practical capacity is not totally used since at the end there is a total of $28,288 of unused resources. Table 3 summarizes the capacity utilization of various resources.