Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
Q: Who needs to be involved in capacity planning?
A: person who needs to be involved in capacity planning as follows:
Q: duction? Ex
A: Capacity refers to a framework's potential for creating merchandise or conveying administrations…
Q: Explain how can a systems-based approach to capacity planning help ?
A: The systems approach ensures that everyone who is connected with any part of the system is part of…
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A: Fixed Cost- Fixed expenses are costs that do not change based on whether sales or production…
Q: snip
A: Given Data: Inventory in between beginning of next week = 62 Demand for next week = 25 Ending…
Q: Explain what is the significance of using a big picture approach to capacity planning?
A: The big picture approach can be characterized as considering all of a business's uncertainties to…
Q: What elements are included in a strategic level capacity plan? Please list 6 items and explain…
A: Below is the solution:-
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Q: A firm’s operational ability (capacity) is very important. Therefore, capacity has been defined…
A: Ans A: The three categories in which the capacity has been divided are as follows. Design capacity…
Q: Out of the following factors that are affecting Capacity Planning, which one is Less Controllable…
A: Capacity planning is the process of planning the required production output based on the requirement…
Q: Explain what models and methodologies are applicable to capacity planning?
A: The following models and procedures can be used to schedule capacity:
Q: Identify four potential unethical actions or inactions related to capacity planning, and the…
A: The four potential unethical acts or inactions relevant to capability planning are as follows:
Q: Southeastern Oklahoma State University's businessprogram has the facilities and faculty to handle an…
A: Given; The actual intake is 1450 and the Design capacity is 2000.
Q: How much capacity has been used? d. If the variable cost is increased to $55, what is the percent…
A: A breakeven point is a point of no profit or loss. Breakeven point = fixed cost/(selling price per…
Q: What are the issues related to capacity building for scale advantage and its short falls?
A: CAPACITY BUILDING Capacity Building is also known as Capacity Development. It refers to the…
Q: Wolfgang Kersten Mfg. intends to increase capacitythrough the addition of new equipment. Two vendors…
A: Contribution margin = CM = Price – variable cost CM for X = 200-120= $80 CM for Y = 200-100= $100
Q: Describe what would a capacity in chunks mean and why is it a consideration in capacity planning?
A: Organizations can ensure that their existing delivery capabilities are enough to meet long-term…
Q: How is capacity utilization computed, and what does it tell us?
A: Economic output is described as the all the services and the good that are manufactured by a country…
Q: Describe how can a system based approach to capacity planning help ?
A: Introduction:- Managers need to consider all system components can results in inequitable…
Q: Define what you mean by "what-if analysis." How might a spreadsheet be used in capacity planning?
A: What-If Analysis is that the process of adjusting the values in cells to ascertain how those changes…
Q: Explain long-term capacity and how it interacts with scale economies and diseconomies
A: Planning process is a technique for estimating an organization's ability (maximum limit) to provide…
Q: What are the factors that go into capacity planning? Consider a few options for balancing the load…
A: Capacity need planning has evolved into a critical activity in industrial organisation. This step…
Q: Short-term capacity planning deals with which of the following factors? Select one: O All of choices…
A: Capacity Planning: Capacity Planning is very important to every manufacturing…
Q: Explain what exactly is capacity requirements planning?
A: Capacity requirement planning is the accounting term for the process of determining a company's…
Q: Stapleton Manufacturing intends to increase capac-ity through the addition of new equipment. Two…
A: Formula:
Q: Describe what does it meant to take a big picture approach to capacity planning in organization's
A: Capacity planning is the technique of calculating the bare minimum of equipment necessary to produce…
Q: At first glance, the concepts of the focused factory and capacity flexibility may seem to contradict…
A: focused factory and capacity flexibility
Q: State how does the long term capacity considerations differ from that of short term capacity…
A: To be determined: how does the long term capacity considerations differ from that of short term…
Q: a) Determine the company's cost function, including their total fixed costs and variable costs per…
A: We are given the selling price = 300 euros, maximum production= 12000 units, total cost= € 1,380,000…
Q: Opportunity costs are relevant to which of the following decisions? Whether to accept a special…
A: Opportunity cost refers to the value forgiven for choosing the next best alternative. The loss of…
Q: Explain why is it important to adopt a big picture approach to capacity planning
A: A big picture strategy that takes into account all facets of business difficulties in required to…
Q: Briefly discuss how does capacity planning interrelates with other activities of operations?
A: Capacity planning refers to budgeting and scaling the business in order to identify the optimal…
Q: What is the significance of using a big-picture approach to capacity planning ?
A: The big picture approach may be characterized as considering all the uncertainties in a business to…
Q: Two different manufacturing processes are being considered formaking a new product. The first…
A: Process 1 (less capital intensive): Fixed Cost = $46,400 Variable Cost = $720 per unit Process 2:…
Q: Draw a detailed break-even chart. b) Compute the break-even point (i) in units; (ii) in dollars;…
A:
Q: Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding…
A: Break-even unit is the point where most companies stop production and take a break for a while, and…
Q: How can a systems approach to capacity planning be useful?
A: Capacity planning is the planning of a firm to know the production capacity needed to satisfy the…
Q: What volume (units) of output would the two alternatives yield the same profit?…
A: Given data For proposal A Fixed cost = $50000 Variable cost = $12 Revenue = $20 For proposal B…
Q: Given the following master production schedule require-ments and bill of labor, determine the work…
A:
Q: The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the…
A:
Q: Explain what does it mean to take a big-picture approach to capacity planning
A: Capacity planning is the process of estimating the required facility to produce the required output.…
Q: Southeastern Oklahoma State University's business program has the facilities and faculty to handle…
A: Given data, Enrollment of new students = 2200 A ceiling on enrolment of new students = 1500…
Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The va riable cost for A is $12.00, and fo r B, $10.00. The revenue generated by each unit is $20.00. a) What is the break-even point in units for proposal A? b) What is the break-even point in units for proposal B? |
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- The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line ofpies, which will require leasing new equipment for a monthly payment of $6,000. Variablecosts would be $2 per pie, and pies would retail for $7 each.a. How many pies must be sold in order to break even?b. What would the profit (loss) be if 1,000 pies are made and sold in a month?c. How many pies must be sold to realize a profit of $4,000?d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie?The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which will require leasing new equipment for a monthly payment of $6,000. Variable costs would be $2 per pie, and pies would retail for $7 each. a. How many pies must be sold in order to break even? b. What would the profit (loss) be if 1,000 pies are made and sold in a month? How many pies must be sold to realize a profit of $4,000? С. d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie? 5-30. If the opening backlog is 450 units, forecast demand is 700 units, and production is800 units, what will be the ending backlog?
- Basil's Framing manufactures picture frames in one workshop, which has a practical capacity of 40,000 frames. The variable cost of a frame is $24 per unit, and the fixed costs of the workshop are $392,000 annually. Current annual demand is 28,000 frames. Basil's Framing bought the current workshop because of forecasts that demand for the frames would grow. Required: a. What cost per frame should the cost system report to facilitate management decision making?Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and Web site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell access to the book for $46 each. a. What is the break even point? b. what profit or loss can be anticipated with a demand for 3800 copies c. Wiht a 3800 copy demand, proced at $50.95 , what profit or loss can be expected?Eastwood Cake Factory sells chocolate cakes, birthday cakes, and specialty cakes. The factory is experiencing a bottleneck and is trying to determine which cake is most profitable. Even though Eastwood may have to limit its orders, it is concerned about customer service and satisfaction. Line Item Description Chocolate Cake Birthday Cake Specialty Cake Sales price $20.00 $45.00 $60.00 Variable cost per cake $5.00 $12.00 $20.00 Hours needed to bake, frost, and decorate 1 hour 2.5 hours 2 hours a. Compute the contribution margin per hour per cake. If required, round your answers to two decimal places. Cake Amount Chocolate cake $fill in the blank 1 Birthday cake $fill in the blank 2 Specialty cake $fill in the blank 3 b. Determine which cakes the company should try to sell more of first, second, and then last. Rank Cake 1st: 2nd: 3rd:
- Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding new equip-ment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variablecost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?Jody of Jody’s Custom Tailoring is considering expandingher growing business. Th e question is whether to expand with abigger facility than she needs or with a small facility, knowing thatshe will have to reconsider expanding in three years.Jody has estimated the following chances for demand:• Th e likelihood of demand being high is 0.50.• Th e likelihood of demand being low is 0.50. She has also estimated profi ts for each alternative:• Large expansion has an estimated profi tability of either$200,000 or $100,000, depending on whether demand turnsout to be high or low.• Small expansion has a profi tability of $80,000, assuming thatdemand is low.• Small expansion with an occurrence of high demand wouldrequire considering whether to expand further. If thebusiness expands at that point, the profi tability is expectedto be $120,000. If it does not expand further, the profi tabilityis expected to be $70,000.Draw a decision tree and solve it. What should Jody’s CustomTailoring do?1. Develop a level production plan for Covolo Diving Gear. What are the advantages and disadvantages of this plan? Could Covolo implement a pure chase plan, given the current capacity? Why? If sales continue to grow, what are the implications for production capacity at Covolo?
- What Is Support Operational Requirements?2. Explain how dependent demand is handled in service organizations and describe the use of technology..Heath Production manufactures chairs. Several weeks ago, the company received an inquiry from Rose Limited. Rose wants to market a foldable chair similar to one of Heath’s and has offered to purchase 12 000 units if the offer can be completed in three months. The cost data for Heath’s foldable chair is as follow: Direct material $16.40 Direct labour (0.125 @ $36 per hour) 4.50 Total manufacturing overhead 20.00 Total $40.90 The normal selling price of Heath’s foldable chair is $51.00. However, Rose has offered Heath only $31.50 because of the large quantity it is willing to purchase. Rose requires a modification of the design that will allow a $4.20 reduction in direct material cost. The production manager of Heath notes that the company will incur $8400 in additional setup costs and will have to purchase $5800 special equipment to…