Cassidy Corporation is relocating its facilities. The company estimates that it will take three trucks to move office contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles? Select one: a. $3,600 b. $2,400 c. $1,200 d. $1,000
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Cassidy Corporation is relocating its facilities. The company estimates that it will take three trucks to move office contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles?
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- Suppose that an aircraft manufacturer desires to make a preliminary estimate of the cost of building a 600-MW fossil-fuel plant for the assembly of its new longdistance aircraft. It is known that a 200-MW plant cost $100 million 20 years ago when the approximate cost index was 400, and that cost index is now 1,200. The cost-capacity factor for a fossil-fuel power plant is 0.79. Estimate the cost using power sizing method.Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $170,000. Variable processing costs are estimated to be $5 per book. The publisher plans to sell single-user access to the book for $45. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,700 copies? For subtractive or negative numbers use a minus sign. $ (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur? (i) Breakeven appears in the interval of 3,800 to 4,000 copies. (ii) Breakeven appears in the interval of…A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 28,500 units of output each month. However, it has an absolute maximum output capability of 35,000 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 22,120 units in October, what is the capacity utilization rate in October for this factory? (Round your answer to 1 decimal place.)
- Use the following information for the next 3 problems: ABC Company plans to construct a 60,000 sq. ft private warehouse and rent public warehouse as needed. Warehouse inventory turns at the rate of 2 times per month. One pound of merchandise occupies 0.2 cubic feet of warehouse space and can be stacked 10 feet high. Given aisles, and normal operating efficiency, only 50 percent of the total warehouse space is actually used for storage. Assume the facility is being built to size so no additional space is allowed for future product growth. A private warehouse can be constructed for $36 per sq. ft. and can be amortized over 20 years. Annual fixed costs amount to $20 per sq. ft. of total space. The cost of operation is $0.03 per pound of throughput. Space may also be rented for a storage charge on inventory of $0.06 per pound per month and a handling charge of $0.05 per pound of throughput. Monthly demands for a typical year are as follows: Month Demand (lb) Jan 2,000,000…Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $150,000. Variable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for $49. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,400 copies? For subtractive or negative numbers use a minus sign. $ (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur? (i) Breakeven appears in the interval of 3,000 to 3,200 copies. (ii)…Walton, Inc. is unsure whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $32, while the cost of assembling each unit is estimated at $34. Unassembled units can be sold for $110, while assembled units could be sold for $142 per unit. What decision should Walton make?
- A company has a factory that is designed so that it is most eficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?A manager must decide how many machines of a certain type to buy. The machines will be used to manufacture a new gear for which there is increased demand. The manager has narrowed the decision to two alternatives: buy one machine or buy two. If only one machine is purchased and demand is more than it can handle, a second machine can be purchased at a later time. However, the cost per machine would be lower if the two machines were purchased at the same time. The estimated probability of low demand is .30, and the estimated probability of high demand is .70. The net present value associated with the purchase of two machines initially is $77,900 if demand is low and $137,100 if demand is high. The net present value for one machine and low demand is $98,000. If demand is high, there are three options. One option is to do nothing, which would have a net present value of $119,680. A second option is to subcontract; that would have a net present value of $115,650. The third option is to…EMV APPLIED TO CAPACITY DECISION Southern Hospital Supplies, a company that makes hospital gowns, is considering capacity expansion.APPROACH: c Southern’s major alternatives are to do nothing, build a small plant, build a medium plant, or build a large plant. The new facility would produce a new type of gown, and currently the po-tential or marketability for this product is unknown. If a large plant is built and a favorable market ex-ists, a profit of $100,000 could be realized. An unfavorable market would yield a $90,000 loss. However, a medium plant would earn a $60,000 profit with a favorable market. A $10,000 loss would result froman unfavorable market. A small plant, on the other hand, would return $40,000 with favorable marketconditions and lose only $5,000 in an unfavorable market. Of course, there is always the option of doingnothing.Recent market research indicates that there is a .4 probability of a favorable market, which meansthat there is also a .6 probability of an…
- Q.11 In 2021, SM Entertainment., had P900,000,000 of sales and it had P450,000,000 of fixed assets that were used at only 70% of capacity. What is the maximum sales growth rate the company could achieve before it had to increase its fixed asset? ANSWER FORMAT: 50.00%A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. Each customer provides $50 of revenue and variable costs are $20/customer. a) What is the number of customers required for each model to break even? b) What is the break-even point in dollars?An executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?