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- ABC Co. manufactures a subcomponent at the rate of 400 per day when required. Its annual demand for this item is 50,000 units. Assume 250 working days per year. Holding cost is $10 per unit per year. Set-up cost is 600 per set-up. Find: a) Economic production quantity. b) How many production runs will be made per year. c) What will be the maximum inventory level?What does it mean that “ideally, utilization should be limited by demand and not setup or down time”? Would it happen in a push or pull system?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:
- Please answer with details on how to do it. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is P = -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Total cost = fixed cost + Variable cost, TC = CF + CV Revenue = Demand x Price, TR = D x P Profit = Total Revenue – Total Cost, P = TR – TC a) Develop the equations for the total cost and total revenue. Find the breakeven quantity c) How many units must be sold to maximize profit? What is the company’s maximum profit?The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. 1. Use the information in the scenario above. What is the economic order quantity for the XO-01?Why is it important for managers to understand the concept of break-even points? Are there any drawbacks?
- Lewis contracted with the government to dredge 2 million cubic yards of silt from a ship channel. After excavating 1.5 million cubic yards, he quit the job. Should he be paid anything for partial performance? Explain.Payless Shoe Source sees a 35 per cent increase in sales of its athletic shoesduring a 1 week, half-price sale.Philips Inc is considering investing in a new project and to estimate the consumer demand they hired a marketing consulting team. The consulting team concluded that the project is viable if the discount rate is smaller than 20%. How would you classify the cost of this marketing study? Group of answer choices Cost of debt Erosion cost Opportunity cost Sunk cost Correct answer is not available
- South Plains Manufacturing Inc. must select a process for its new product, TT2, from among three different alternatives. RMC gather the following cost data. For what volume of demand would each process be desired? South Plains Manufacturing Cost Data Process A Process B Process C Fixed Cost $10,000 $20,000 $30,000 Variable Cost per unit $80 $95 $120 Please do fast ASAP ....fastMC at 5 level of output.⦁ ABC Company has a product that sells for $400 per unit and its variable cost per unit is $260. Company’s fixed cost is $840,000. Required: ⦁ What is the Break-even Point in Units? Show computation