Manufacturing cost is $200 per server, equally divided between materials and labor. Inventory storage cost is $6 per month. Ashortage of servers results in lost sales and is estimated to cost an overall $21 per unit short.The inventory on-hand at the beginning of the planning period is 200 units. Twelve labor hours are required per DVD player. Theworkday is nine hours.Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days eachmonth except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total productioncapacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leavethe cells blank, whenever zero (0) is required. Indicate monthly shortages using a negative ending inventory level. Round up the"number of workers" to the next whole number and round down your "monthly production rates" to the next lower whole number.)JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotalForecast640840940640440340240240340740840940Beginning inventory200219438757776595Available production621621621621621621Ending inventory219438757776595314CostsLost salesInventory1,3142,6284,5424,6563,5701,884Total1,3142,6284,5424,6563,5701,884 Shoney Video Concepts produces a line of video streaming servers that are linked to computers for storing movies. These deviceshave very fast access and large storage capacity.Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level isto be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to prompt anyadverse feelings from the local workforce. For the same reason, all employees should put in full workweeks, even if that is not thelowest-cost alternative. The forecast for the next 12 months isITEMONTHFORECAST DEMANDMONTHFORECAST DEMANDJanuaryFebruary640JulyAugustSeptemberOctober240840240March940340AprilMay640740440November840June340December940Manufacturing cost is $200 per server, equally divided between materials and labor. Inventory storage cost is $6 per month. Ashortage of servers results in lost sales and is estimated to cost an overall $21 per unit short.The inventory on-hand at the beginning of the planning period is 200 units. Twelve labor hours are required per DVD player. Theworkday is nine hours.Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days eachmonth except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total productioncapacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leavethe cells blank, whenever zero (0) is required. Indicate monthly shortages using a negative ending inventory level. Round up the"number of workers" to the next whole number and round down your "monthly production rates" to the next lower whole number.)

Manufacturing price refers to the overall fees incurred by means of a employer within the manner of…

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Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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A manufacturing Company has estimated its quarterly demand (units) as shown in the following table. It expects the next demand cycle to be similar to this one and wishes to restore ending inventory, employment, etc., to beginning levels accordingly. Quarter Units 1st 2250 2nd 2800 3rd 1700 4th 1600 Each quarterly change of 300 units output has an incremental labour cost of OMR. 1,600, and ending levels must be restored to initial levels. What is the cost associated with changing the work force size? (Write the number only) Answer:
Mrs. Mei Mei, the owner and manager of the Moora Photocopy Sdn Bhd located near your university, is contemplating to keep her shop open after 6 p.m. and until midnight. In order to do so, she would have to hire additional workers, L. She estimates that the additional workers would generate the following total output, Q (where each unit of output refers to 100 pages duplicated). Workers hired (L) 0 1 2 3 4 5 6 Total product (Q) 0 12 22 30 36 40 42 A. Help Mrs. Mei Mei to calculate the average product (APL) and marginal product (MPL) of the additional worker (please copy the table in your answer). B. Using the VMP rules, how many workers should Mrs. Mei Mei hires if the price of each unit of output is $10 and each workers hired must be paid $40 per day (show the relevant calculation. C. Using MR=MC approach, prove that the number of workers that Mrs. Mei Mei should hire is the same as that obtained in (b).
Q2) Samantha has an annual non-labour income of $5000. Suppose she has the total available time of 4160 hours per year. Samantha's wage rate is $15 per hour, and she chooses to work 2000 hours in a year. Suppose when Samantha's wage rate increases from $15 to $18 per hour, she will work 2040 hours. At $18 per hour, if she works 2200 hours per year, she would be indifferent to her original work decision before the wage increase. a) Draw a diagram to show all the given information related to Samantha's work circumstances. Calculate all the relevant income levels and label them in the graph. b) Calculate Samantha's income effect, substitution effect and total effect related to the wage increase. Show them in the diagram.
What do economists mean by "deminishing returns" to an input? What causes diminishing returns? Where would one observe this principle at a job and the real world?
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6. A company uses two inputs, unskilled labour (L) and capital (K), to produce itsproduct. The wage rate for a unit of labour is €5, while a unit of capital cost €20.a) Determine the equation and plot the isocost line for the company's expenditures on itsinputs of €1,000. Label the intercepts of the isocost with both axes. Draw a typical isoquantfor an output level Q0 and indicate the optimal input levels of L and K. (Do not forget tolabel the axes).b) Suppose the government introduces a minimum wage for unskilled labour of €6 per unit.Show graphically and explain shortly how much it would cost the firm in the short run,with capital input fixed at K, to keep its output constant at Q0.c) Show graphically and comment shortly on the optimal factor mix that the firm would useto produce Q0 in the long run at the specified minimum wage of €6 per unit
b) Let PA = 30 , Pg = 10. Suppose Ezhel wishes to produce 10,000 songs. How much hours Dj Artz and Bugy %3D should he employ? How much will it cost to produce? c) Suppose that Ezhel wants to produce is now 18,371 songs, but Bugy is not available to contribute his album more than previous level in the short-run. Assuming he is unable to employ Bugy for more hours, how much will it cost to meet the new production level? d) In the long-run, Ezhel will be able to employ Bugy. If Ezhel continues to produce 18,371 units of songs, how much will it cost in the long run?
The following data relate to direct labor costs for the current period: Standard costs 7,100 hours at $11.10 Actual costs 6,300 hours at $10.50 What is the direct labor time variance? Oa. $8.880 unfavorable Ob. $8,400 favorable Oc. $8,400 unfavorable Od. $8,880 favorable
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Assume that the production function of a firm is Q = L0.23K0.10. L = labor, K = capital.Referring to the information given,i. Calculate the technical suit replacement rate (MRTS) of the firm? ii. Calculate the value and explain the form of return according to the scale (return to scale) of the firmthe?
hedule detailing the weekly total production of per week, and the cost of each unit of capital is tz uolzsano C
Suppose the marginal product of labor is MPN = 200 – 0.5N where N is aggregate employment. The aggregate quantity of labor supplied is 300 + 8w, where w is the real wage. What is the equilibrium real wage? (a) 5 (b) 10 (c) 15 (d) 20