A company produces a single product. Variable production costs are $14.00 per unit and variable selling and administrative expenses are $5.00 per unit. Fixed manufacturing overhead totals $56,000 and fixed selling and administration expenses total $60,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 4,600 units, the dollar value of the ending inventory under variable costing would be: Multiple Choice $19,600 $32,200 $26,600 $12,600
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- If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)? c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Can you guess the results of a sensitivity analysis on the initial inventory in the Pigskin model? See if your guess is correct by using SolverTable and allowing the initial inventory to vary from 0 to 10,000 in increments of 1000. Keep track of the values in the decision variable cells and the objective cell.The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. As indicated by the algebraic formulation of the Pigskin model, there is no real need to calculate inventory on hand after production and constrain it to be greater than or equal to demand. An alternative is to calculate ending inventory directly and constrain it to be nonnegative. Modify the current spreadsheet model to do this. (Delete rows 16 and 17, and calculate ending inventory appropriately. Then add an explicit non-negativity constraint on ending inventory.)
- The Pigskin Company produces footballs. Pigskin must decide how many footballs to produce each month. The company has decided to use a six-month planning horizon. The forecasted monthly demands for the next six months are 10,000, 15,000, 30,000, 35,000, 25,000, and 10,000. Pigskin wants to meet these demands on time, knowing that it currently has 5000 footballs in inventory and that it can use a given months production to help meet the demand for that month. (For simplicity, we assume that production occurs during the month, and demand occurs at the end of the month.) During each month there is enough production capacity to produce up to 30,000 footballs, and there is enough storage capacity to store up to 10,000 footballs at the end of the month, after demand has occurred. The forecasted production costs per football for the next six months are 12.50, 12.55, 12.70, 12.80, 12.85, and 12.95, respectively. The holding cost incurred per football held in inventory at the end of any month is 5% of the production cost for that month. (This cost includes the cost of storage and also the cost of money tied up in inventory.) The selling price for footballs is not considered relevant to the production decision because Pigskin will satisfy all customer demand exactly when it occursat whatever the selling price is. Therefore. Pigskin wants to determine the production schedule that minimizes the total production and holding costs. Modify the Pigskin model so that there are eight months in the planning horizon. You can make up reasonable values for any extra required data. Dont forget to modify range names. Then modify the model again so that there are only four months in the planning horizon. Do either of these modifications change the optima] production quantity in month 1?A company produces A, B, and C and can sell theseproducts in unlimited quantities at the following unit prices:A, $10; B, $56; C, $100. Producing a unit of A requires 1hour of labor; a unit of B, 2 hours of labor plus 2 units ofA; and a unit of C, 3 hours of labor plus 1 unit of B. AnyA that is used to produce B cannot be sold. Similarly, anyB that is used to produce C cannot be sold. A total of 40hours of labor are available. Formulate an LP to maximizethe company’s revenues.In the Walton Bookstore example with a discretedemand distribution, explain why an order quantityother than one of the possible demands cannot maximizethe expected profit. (Hint: Consider an orderof 190 calendars, for example. If this maximizesexpected profit, then it must yield a higher expectedprofit than an order of 150 or 100. But then an orderof 200 calendars must also yield a larger expectedprofit than 190 calendars. Why?)
- Can you show how to put it in Excel? XYZ store sells regular and premium nut mixes. Premium mix contains three quarters pound of cashews and one quarter of peanuts, and the regular mix has half pound of cashews and half pound peanuts per bag. The shop has 200 pounds of cashews and 300 pounds of peanuts to work with. Cashews cost $1.50 per pound, and peanuts cost 60 cents per pound. Premium mix will sell for $2.90 per pound, and the standard mix will sell for $2.55 per pound. The owner esimtes that no more than 200 bags of one types can be sold. What is the best combinations of products that maximizes profits? Make sure to create a feasible solution with countable number of products (no partials)Spein Company is a diversified company that discloses supplemental financial information on itssegments. The following information is available for 2019:Sales Traceable Costs Allocable CostsSegment X $400,000 $225,000Segment Y 300,000 240,000Segment Z 200,000 135,000Totals $900,000 $600,000 $150,0006Allocable costs are assigned based on the ratio of a segment’s income before allocable costs to totalincome before allocable costs. This is an appropriate method of allocation. Segment Y’s profit for 2019is ____________________.A. 32,400 Small; 8,100 Medium; 1,620 LargeB. 34,808 Small; 8,700 Medium; 1,740 LargeC. 37,010 Small; 9,250 Medium; 1,850 LargeD. 38,505 Small; 9,625 Medium; 1,925 LargeWe produce a breakfast cereal containing oats and rice (among other ingredients). We want to ensure there is at least 96 mg of vitamin A and at least 24 mg of vitamin B in each box. An ounce of oats contains 8 mg of vitamin A and 1 mg of vitamin B. An ounce of rice contains 6 mg of vitamin A and 2 mg of vitamin B. Oats cost $.05/ounce and rice costs $.03/ounce. what are the constants
- A sales representative lives in Bloomington and must bein Indianapolis next Thursday. On each of the days Monday,Tuesday, and Wednesday, he can sell his wares in Indianapolis,Bloomington, or Chicago. From past experience, he believesthat he can earn $12 from spending a day in Indianapolis, $16from spending a day in Bloomington, and $17 from spendinga day in Chicago. Where should he spend the first three daysand nights of the week to maximize his sales income lesstravel costs? Travel costs are shown in Table 2. To From Indianapolis Bloomington ChicagoIndianapolis — 5 2Bloomington 5 — 7Chicago 2 7 —“Good Intentions” (GI) company produces two products, which it sells on both a cash and credit basis. Revenues from credit sales will not have been received but are included in determining profit earned during the current six-month period. Sales during the next six months can be made either from units produced during the next six months or from the beginning inventory. Relevant information about products one and two is as follows. During the next six months, at most 150 units of product type 1 can be sold on a cash basis, and at most 100 units of product 1 can be sold on a credit basis. It costs £35 to produce each unit of product type 1, and each sells for £40. A credit sale of a unit of product 1 yields £0.50 less profit than a cash sale (because of delays in receiving payment). Two hours of production time are needed to produce each unit of product 1. At the beginning of the six-month period, 60 units of product 1 are in the inventory. During the next six months, at most 175 units…a. What LP model is the best describe from the given problem? b. How many pairs of downhill skis should the company produce to maximize the profit? c. How many pairs of crosscounty skis should the company produce to maximize the profit? d. How much is the optimal maximum profit?