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- The Ace Company sells a single product at a budgeted selling price per unit of $20. Budgeted fixedmanufacturing costs for the coming period are $10,000, while budgeted fixed marketing expenses forthe period are $24,000. Budgeted variable costs per unit include $2 of selling expenses (commission)and $4 of manufacturing costs. What is the budgeted operating income if the anticipated sales volumefor the period is (1) 10,000 units, and (2) 15,000 units? (Round answers to the nearest whole number.)Imagine that a firm produces good X with just two factors: capital, which is fixed in supply; and labour, which is variable. The effect on total output (TPP) of increasing the number of workers is shown in column (2) of the table below. (We will fill in columns (3) and (4) ) The relationship between the output (total physical product) of good X and the number of workers employed (1) No. of workers (2) TPP (3) APP (4) MPP 0 1 2 3 4 5 6 7 8 9 0 10 26 41 52 60 65 67 67 63 ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. ……. …….1) Which of the following translates business plan into productionplanningAPPMPSMRPNone of the Above2) Master production schedule is a medium-range planning and it isused for quantity and timing ofcomponents and raw materialFinished goodsBoth A & B3) The manufacturing strategy which deploys hiring and laying ofworkers in order to match its production rate to demand is calledLevel Production StrategyChase Production StartegyHybrid StrategyNone of the above4) "In a level production strategy, if the firm makes annual 120,00units per annum, the permonth production can be estimatted by""120,00 /12""120,00 / 365"The information is not complete5) The Bill of material is an engineering documments that showsinclusive listing and sub-components to be used for end productTRUEFALSE6) A lead capacity usually increases or decreases its capacity in anticipation of demand, this is known as "Match strategyLead Capacity StrategyLag capacity strategy7) The most important output of MRP isBOMPlanned…
- A manager wants to know how many units of each product to produce on a daily basis in order toachieve the highest contribution to profit. Production requirements for the products are shown inthe following table.ProductMaterial 1(pounds)Material 2(pounds)Labor(hours)A 2 3 3.2B 1 5 1.5C 6 — 2.0Material 1 costs $5 a pound, material 2 costs $4 a pound, and labor costs $10 an hour. Product Asells for $80 a unit, product B sells for $90 a unit, and product C sells for $70 a unit. Availableresources each day are 200 pounds of material 1; 300 pounds of material 2; and 150 hours of labor.The manager must satisfy certain output requirements: The output of product A should not bemore than one-third of the total number of units produced; the ratio of units of product A to units ofproduct B should be 3 to 2; and there is a standing order for 5 units of product A each day. Formulate a linear programming model for this problem, and then solveA manufacturing company has the following financial information (in millions of $)Sales $562Cost of goods soldDirect labor 43Purchased materials 267Overhead 35All other costs 142Pretax earnings 75a. What is the profit leverage effect of purchasing in this company?b. What is the percent increase in earnings from a 5 percent savings in purchasing?You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 7%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $488,250. a) How much of this revenue was sales (in $) and how much was sales tax (in $)? sales sales tax b) How much sales tax (in $) should be sent to the city? c)How much sales tax (in $) should be sent to the state?
- The manager of a live stock feed company faces a production function Q=2L^0.5 K^0.5 where K represents capital equipment and L is labour.Assume the company has spent $16,000 4 units of capital equipment it owns.If workers at the firm are paid a competitive wage of $100 per worker and Feed Can be sold for $200per unit . 1.what is your profit maximising level of output and labour usage 2.what is your maximum profit 3.Use the production function to get the profit function.For a table manufacturing company, selling price for a table is $183.00 per Unit, Variable cost is $25.00 per Unit, rent is $3,380.00 per month and insurance is $296.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $254.00 per Unit, Variable cost to $43.00 per Unit, bigger area will have rent $5,235.00 per month and insurance is $362.00 per month At what point will the company be indifferent between the current mode of operation and the new option?The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are 45% of the sales price, which is $100. Chun currently sells 7,400 units per month and is looking to sell more. Consider each of the following independently: Part A The marketing manager is considering lowering base salaries of salespeople by a collective amount of $39,000 per month while increasing the sales commission by $8 per unit. He believes this will increase monthly sales by 130 units. If so, what would the effect of this change in compensation have on monthly income? INCREASE OR DECREASE of $BLANK Part B Management believes monthly sales can be increased by 570 units if additional quality control steps are taken. These steps would mean an increased variable cost per unit of $10. What is the expected effect on the company's monthly income of adding these additional quality control steps? (DECREASE OF 48,350, DECREASE OF 54050, DECREASE OF 48892, OR INCREASE BY 25650)
- Note :write the equations seperately A firm is making two products A & B. Each unit of A incurs a cost of production to the tune of $150 and that of B incurs a cost of $200. Product A carns a profit of $15/unit and B gets $20/unit. The estimated monthly demand of both A & B is at maximum 500 units. Monthly production budget is set at $50.000.How many units of A & B should the firm make in order to maximize profit. Conduct sensitivity analysis and answer the following questions: 1. State the optimal solution. 2. What is the objective function value? 3. Find out the range of profit for A in the objective function for which the above solution remains optimal.As the manager of Speedy Supermarket, answer the following questions. (Round dollars to the nearest cent and percents to the nearest tenth of a percent.) An advertisement has two 2 liter bottles and a 12 pack of "Bubbly-Cola". The top says "Speedy Supermarket." Moving down are the 2 liter bottles. Text around them is as follows. Sale 4/$5 2 Liter Bubbly-Cola Products Below the bottles is the 12 pack. Text around it is as follows. Sale $13/3 12 Pack Bubbly-Cola Products (a) If 2 liter Bubbly-Cola products cost Speedy $16.20 per case of 24 bottles, what is the amount of the markup (in $) and what is the percent markup on selling price per case? amount of the markup$ percent markup on selling price % (b) If 12 pack Bubbly-Cola products have a markup of $8.65 per case of six 12 packs at Speedy, what are the cost (in $) and the percent markup on selling price per case? cost$percent markup on selling price % (c) Why has Speedy Supermarket chosen to use markup based on…As the manager of Speedy Supermarket, answer the following questions. (Round dollars to the nearest cent and percents to the nearest tenth of a percent.) An advertisement has two 2 liter bottles and a 12 pack of "Bubbly-Cola". The top says "Speedy Supermarket." Moving down are the 2 liter bottles. Text around them is as follows. Sale 4/$5 2 Liter Bubbly-Cola Products Below the bottles is the 12 pack. Text around it is as follows. Sale $13/3 12 Pack Bubbly-Cola Products (a) If 2 liter Bubbly-Cola products cost Speedy $15.90 per case of 24 bottles, what is the amount of the markup (in $) and what is the percent markup on selling price per case? amount of the markup$ percent markup on selling price % (b) If 12 pack Bubbly-Cola products have a markup of $8.75 per case of six 12 packs at Speedy, what are the cost (in $) and the percent markup on selling price per case? cost$ percent markup on selling price % (c) Why has Speedy Supermarket chosen to use markup based on…
