If maximum output is 10,000 units, current output is 8000 units and break even output is 4500 units, then the safety margin is?
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If maximum output is 10,000 units, current output is 8000 units and break even output is 4500 units, then the safety margin is?
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- The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is anticipated to be 35 cords per day, what would be its utilization? 100 percent 80 percent 75 percent 70 percent 0 percent The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency? 100 percent 80 percent 75 percent 70 percent 0 percentIn order to produce 1000 units of X in a week? units X is scheduled weekly for Operation B (due to 5% scrap ratio)? units X is scheduled weekly for Operation A (due to 2% scrap ratio) Based on your answer in part a, find the number of machines required to produce 1000units of X per week.? The total time required to perform Operation B = ? minutes per week? The total time required to perform Operation A = ? minutes per weekH= Available Time in a week = minutes /weekThusFA = ?FB = ?Since both of the operations A and B are performed on the same machine? machines are requiredYost-Perry Industries’ (YPI) senior management team wants to improve the profitability of the firm by accepting the right set of orders. Currently, decisions are made using the traditional method, which is to accept as much of the highest contribution margin product as possible (up to the limit of its demand), followed by the next highest contribution margin product, and so on until all available capacity is utilized. Because the firm cannot satisfy all the demand, the product mix must be chosen carefully. Jay Perry, the newly promoted production supervisor, is knowledgeable about the TOC and the bottleneck-based method for scheduling. He believes that profitability can indeed be improved if bottleneck resourcesare exploited to determine the product mix. What is the change in profits if, instead of the traditional method that YPI has used thus far, the bottleneck method advocated by Jay is used for selecting the product mix?
- Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable costs is $15 per unit. The revenue is $21 per unit. The break-even point for machine A is a. $90,000 dollars b. 90,000 units: c. $15,000 dollars d. 15,000 unitsTwo machines A and B produce items at the rate of 50 units per hour and 40 units per hour respectively. Under certain production plans, the total number of items needed is at least 1000 items, the total number of hours available for running the machines is atmost 24 hours. If the hourly cost is P300 for machine A and P250 for machine B, how many hours should each machine be used in order to minimize the cost? What is the minimum cost? Use either graphical method or simplex methodThere is no spoilage, the beginning WIP Inventory is 6,000 units, and the ending WIP Inventoryis 4,000 units for the second department in a two-department process. What is the number of unitstransferred in to the second department if good output of the second department is 35,000 units?
- Georgetown Pizza makes favorite pan pizzas every day with three working shifts around the clock. The current completely cooked pizza making process has a fixed cost of $24,000, and a variable cost of $2.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked and selling at $13.98 per unit, or partially cooked with a selling price of $12.98 per unit. This alternate process has a fixed cost of $28,000, but a lower variable cost (because much less energy is used in baking) of $2.25 per pizzac. If the owner expects to get $390,000 as a half year profit, how many units of completely cook pizzas, should Georgetown sell a year using the current pizza making process? d. Determine the annual design capacity for Georgetown’s production if the completely cook pizzas can be produced at 120 units per hour.explain why capacity needs prediction. You are required to reference Hard Rock Cafe in your explanationThe school cafeteria can make pizza for approximately $0.30 per slice. The cost of the kitchen use and cafeteria staff runs about $200 per day. The Pizza Den nearby will deliver whole pizzas for $9.00 each. The cafeteria staff cuts the pizza into eight (8) pieces and serves them in the usual cafeteria line. With no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. Should the school cafeteria make or buy its pizzas? Calculations are needed to justify the answer.
- Discuss in length why capacity needs prediction. You are required to reference Hard Rock Cafe in your explanationGeorgetown Pizza makes its favorite pan pizzas every day with three working shifts around the clock. The current completely cooked pizza-making process has a fixed cost of $24,000, and a variable cost of $2.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked and selling at $13.98 per unit, or partially cooked with a selling price of $12.98 per unit. This alternate process has a fixed cost of $28,000, but a lower variable cost (because much less energy is used in baking) of $2.25 per pizza. a. Determine the breakeven quantity between the current pizza-making process and the alternate process.Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $ 57, the variable cost per unit is $ 18, the fixed costs are $ 7800 and the capacity per period is 500 units. a)Calculate the break-even point in units. Round to the nearest one. b)Calculate the break-even point to the nearest dollar. c)Calculate the break-even point as a percentage of capacity. Round to the nearest one.