Mauna Enterprise produces shoes for overseas market. The company produces 30,000 units of total output and the production rate is 30 minutes per unit with eight (8) working hours per day. The regular rate is RM S per hour. Calculate the regular production cost Answer A RM 75,000 B RM70,000 C RM65,000 D RMG0.000 62014-2022
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- Refer to Exercise 20.10. Assume the economic lot size for small casings is 120,000 and that of the large casings is 40,000. Morrison Manufacturing sells an average of 9,600 small casings per workday and an average of 3,200 large casings per workday. It takes Morrison two days to set up the equipment for small or large casings. Once set up, it takes three workdays to produce a batch of small casings and five days for large casings. There are 250 workdays available per year. Required: 1. What is the reorder point for small casings? Large casings? 2. Using the economic order batch size, is it possible for Morrison to produce the amount that can be sold of each casing? Does scheduling have a role here? Explain. Is this a push- or pull-through system approach to inventory management? Explain.23. FGM Limited produces nail brushes for domestic use. It sells 80,000 in a year. Raw materials cost P0.15 per brush and other variable cost per year P48,000. Fixed costs amount to P60,000. What is the total cost per unit. P0.75 P1.35 P1.50 P1.00Exercise 3 A company sells 200+a units of a product every week where a belongs to the interval [10. 100]. The fixed costs for buildings, machines and employees are $12,000+b a week with b in the interval [1,000; 20.0001, while raw material and other variable costs are $50+c a unit with c in the interval [1; 10]. (a) What is the profit if the selling price is $130 a unit? (b) What is the profit if the selling price is $80 a unit? (c) What is the profit if the selling price is fixed at $80 but sales rise to 450 units a week?
- Q3. Martinez limited is a manufacturing company based in Martinez district, Lusaka province. It manufactures a product called “JUNTA SPARK”. Below is the data relating to JUNTA SPARK: Per Unit (K) Selling price Direct materials Direct Labour cost Variable overhead Fixed overhead cost The total fixed cost per period was K60 million. The company has budgeted to sell 12,000 units of JUNTA SPARK for the period. Required: (i) (ii) (iii) (iv) (v) 2,000 Calculate the Break Even Point (B.E.P) in units and in sales value Calculate the Margin of safety (MOS) in units and percentage Calculate the number of units to be produced if the company is targeting a profit of K1.2 million The Break Even Point in units if the selling price dropped by 5% but other variables remained constant State four major limitations of Cost Volume Profit (CVP) AnalysisQUESTION 6 Eric Clothing Limited’s annual demand for materials X is 50 000 units, and the ordering cost is P10 000 per order and each unit costs P3 000. The estimated cost of holding unit of stock is 15% of the purchase cost.Required:a. Calculate the economic order quantity (EOQ) and; b. Calculate the total annual costs of material X.Q#1HASF & Company produces cleaning kits for shotguns. The production capacity available will enable the firm to produce 50,000 kits annually. A projected income statement for next year shows Sales 460,000 Costs of goods sold 296,000 Gross profit 164,000 Selling and administrative expenses 125,000 Net income 39,000 Fixed manufacturing overhead costs 40% of the cost of goods sold. Regular selling price per unit is 10 A 10% sales commission is paid to sales representatives for each kit sold. The purchasing department of a large discount chain has offered to purchase 1500 kits at $6 each. Company sales manager’s initial response is to refuse the offer…
- 12. Risky Fish Company manufactures winter jackets. Setup costs are P2.00. RFC manufactures 4,000 jackets evenly throughout the year. Using the economic order quantity approach, the optimal production run would be 200 when the cost of carrying one jacket in inventory for one year is:1. The ordering costs related to a product are P12.50 per order. The cost of carrying one item of inventory for one year is P16. The business sells 40,000 units of the product evenly throughout the year. At EOQ, total ordering costs per year and total carrying costs per year, respectively, must be? 2. Data for Magaling Co.’s material X are as follows; annual usage : 12,600 units; Working days per year : 360 days normal lead time 20 days. The units of Material X are required evenly throughout the year. What is the reorder point?16. A company orders 6,225 units per order. Each unit costs £8 to purchase and the cost of holding one unit for one year is 5% of the purchase price. The cost of placing each order is £240 and annual demand is 30,000 units. The economic order quantity (EOQ) is? a) 6,000 units b) 4,360 units c) 5,450 units d) 8,486 units
- 23.AA Mouse, Inc. makes a special mouse for computers. Each mouse sells for Php 25 and annual production and sales are as 120,000 units. Cost of each mouse are as follows: Direct Material Php6.00, Direct Labor 3.00, Variable Overhead 0.80, Variable Selling expenses Php 2.2, and Total Fixed Overhead Cost Php 589,550.00. Calculate the unit contribution margin in pesos. 24.Based on the facts of AA Mouse, Inc. What is the contribution margin ratio for the product? 25.Based on the facts of AA Mouse, Inc. How many mice must the company sell if it desires to earn Php 996,450 in before-tax profits?Q5. Sunn company manufactures a single product that sells for $220 per unit and whose variable costs are $176 per unit. The company's annual fixed costs are $664,400. Management targets an annual income of $1,100,000.12. Fruit Cake Specialist sells 36,000 fruit cakes annually. Annual carrying costs are P5 per fruitcake and the ordering costs are P100 per order The firm has decided to maintain a safety stock of one month's sale or 3,000 fruitcakes.. the delivery time per order is 5 days. assume a 365- day year. What is the economic order quantity (EOQ)?
