Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials per unitproduced. Assume that it is currently at the end of the first quarter of the year, and there are 50,000pounds of material on hand. The company’s policy is to maintain an end-of-quarter inventoryof materials equal to 25 percent of the following quarter’s material requirements for production.How many units of product were produced in the first quarter of the year? Under the assumptionthat production will increase by 10 percent in the second quarter, what are the direct materialsrequirements (in pounds) for planned production in the second quarter?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials per unit
produced. Assume that it is currently at the end of the first quarter of the year, and there are 50,000
pounds of material on hand. The company’s policy is to maintain an end-of-quarter inventory
of materials equal to 25 percent of the following quarter’s material requirements for production.
How many units of product were produced in the first quarter of the year? Under the assumption
that production will increase by 10 percent in the second quarter, what are the direct materials
requirements (in pounds) for planned production in the second quarter?
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Platt company has a fixed cost of £200,000 per annum producing external hard disks with a
selling price £50 per unit. The variable cost of a hard disk is £40.The production capacity per
year is 25,000 hard disks.
a. How many hard disks should Platt sell before it can break even? (Hint: Use ‘Goal seek’ to
get this answer).
b. Given Platt’s assumption, produce a one-way table to show how quantity sold would affect
the profit and elaborate on the relationship.
c. Given Platt’s assumption, produce a two-way table and discuss how a change in sales
volume and variable cost jointly affect profit
d. Please include a graph to supplement your explanation for 1b.
e. Use the auditing toolbar to show the precedents of your current profit cell.
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