EXERCISE 3 The 'Massaua companies' produces electrical components for consoles. A client of the 'Massaua' has asked the firm the realization of a new component. The process of this new product is divided in two phases: 1070 20 st phase: welding: In order to produce this task a 3-year old machine, bought at the time for 500,000 € and amortised in 10 years, could be used. This machine is nowadays exploited at the 50% of its productive capacity (annual capacity is of 55,000 € per machine). nd Since the machining centre represents a bottleneck on the productive process of the Massaua, the firm should buy a new one with a leasing contract which includes an annual fee of 100,000 €. 206614 The production of a unit would require: A cost of 20 € for the consumption of direct materials; 1 hour of direct labour (the hourly cost of direct labour is of 25 €); 1 hour of usage of the machines, uniformly distributed on the 1 and 2 phase, for a total consumption of 0,5 € per unit. A demand of about 30,000 units per year is expected. st nd The 'Massaua' could outsource the production of this product to a Polish supplier at a total cost of 48 € per unit. On the basis of thore information: 6614 p107 1070 1070 62068 70 $206614 206614
EXERCISE 3 The 'Massaua companies' produces electrical components for consoles. A client of the 'Massaua' has asked the firm the realization of a new component. The process of this new product is divided in two phases: 1070 20 st phase: welding: In order to produce this task a 3-year old machine, bought at the time for 500,000 € and amortised in 10 years, could be used. This machine is nowadays exploited at the 50% of its productive capacity (annual capacity is of 55,000 € per machine). nd Since the machining centre represents a bottleneck on the productive process of the Massaua, the firm should buy a new one with a leasing contract which includes an annual fee of 100,000 €. 206614 The production of a unit would require: A cost of 20 € for the consumption of direct materials; 1 hour of direct labour (the hourly cost of direct labour is of 25 €); 1 hour of usage of the machines, uniformly distributed on the 1 and 2 phase, for a total consumption of 0,5 € per unit. A demand of about 30,000 units per year is expected. st nd The 'Massaua' could outsource the production of this product to a Polish supplier at a total cost of 48 € per unit. On the basis of thore information: 6614 p107 1070 1070 62068 70 $206614 206614
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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