SAB Manufacturing Company produces bicycle parts in batches. The demand for the parts is 200 units per month. The holding cost per unit per year is $3. The set-up cost is $50 per production run. The parts can be produced at the rate of 40 unit per day and the daily demand is 9.6 units. The company operates 250 days in a year. Determine: a. Optimal quantity for each production run b. Length of each production cycle c. Number of set-ups per year.
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- (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are 2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). 3. CONCEPTUAL CONNECTION Discuss how this approach to assigning conversion costs can improve delivery time performance.Time le A company produces two types of products: A & B with the following details. Currently, 4 machines are available to produce the two products that operate for 280 days per year, 8 hours per day. Product A: Annual demand = 20,000 Processing time per unit =8 minutes Lot size-D45 Setup time of each lot = 25 minutes Product B: Annual demand = 12,000 Processing time per unit = 18 minutes Lot size=30 Setup time of each lot = 35 minutes Does the company have sufficient capacity to meet the annual demand? (ATTACH YOUR WORK AND SHOW ALL CALCULATIONS)PROBLEMS Problem 1 The Norman Company predicts that 64,000 units of material will be used during the year. The materials are expected to cost P20.00 per unit. It is anticipated that it will cost P 40.00 to place each order. The annual carrying cost is P 2.00 . Determine: a. The most economical order quantity b. The total cost of ordering and carrying at the EOQ point
- Question 4 A company sells one of its products for $11.30 per unit. Its fixed costs are $1,118.00 per month, and the variable cost per unit is $2.70. (a) The contribution margin per unit is $ (rounded to the nearest cent). (b) The break-even volume, i.e., the level of output at break-even, is per month. (If necessary, round up to the next whole number of units.) (c) The profit at a monthly output level of 480 units is $ nearest cent). > Next Question (rounded to the unitsQ_1Al-Amal Factory for Plastic Production Its expected production capacity is 2300 tons, while its design capacity is 3200 tons. Calculate the effective capacity of the plant? Q_2If the estimated quantity for four seasons is 250, using an index number 1.20, find the prediction of seasonal factors for the first semester? Q_3If the fixed costs of a company are estimated at 5000 at the selling price of 20 units, with non-cash fixed costs estimated at 2000 units and bear a variable cost per unit by 15 units, then the amount of the break-even point =? Note, I just want the result, please and thank youQUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the EOQ. Calculate the re-order point if the organisation does not keep safety stock.
- Three production processes-A, B, and C-have the following cost structure: Fixed Cost Variable Cost Process per Year per Unit $120,000 $3.00 90,000 4.00 80,000 4.50 a. What is the most economical process for a volume of 8,000 units? b. How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit? c. What is the break-even volume for each process?Question 15-(C) EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units a month. Unit cost is $5, batch set-up cost is $1,000 and holding cost is $1.00 a unit a month. What is the optimal total cost at its optimal batch size? Choose the nearest answer. $3,250 a month 3000 a month C $2,250 a month $1,750 a month $3.000 a monthQuestion 1 Vandelay Industries has been manufacturing its own touch screens for its cellular phones. The company is currently operating at 100% of capacity. Variable manufacturing overhead is charged to production at the rate of 55% of direct labor cost. The direct materials and direct labor cost per unit to make the touch screens are $3.90 and $5.90, respectively. Normal production is 38,000 cellular phones per year. A supplier offers to make the touch screens at a price of $13.59 per unit. If Vandelay Industries accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $36.860 of fixed manufacturing overhead currently being charged to the touch screens will remain. A) Prepare the incremental analysis for the decision to make or buy the touch screens. B) Based on the quantitative factors, would you recommend that Vandelay Industries continue to make the touch screens, or buy them from the supplier? Are there any qualitative factors to consider aside…
- QUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling price per unit (N$) 16 20 10 Variable cost per unit(N$) 5 15 7 Contribution per unit(N$) 11 5 3 Budgeted Sales Volume (units) 50,000 10,000 100,000 The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix. Required: (a)Calculate the weighted average contribution sales ratio (C/S ratio) of the products? (b)Calculate the break-even sales revenue required AND Calculate the margin of safety. (c)Calculate the amount of sales revenue required to generate a profit of N$600000. (d)Draw a multiproduct profit volume chart assuming the budget is achieved.QUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling price per unit (N$) 16 20 10 Variable cost per unit(N$) 5 15 7 Contribution per unit(N$) 11 5 3 Budgeted Sales Volume (units) 50,000 10,000 100,000 The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix. Required: (a) Draw a multiproduct profit volume chart assuming the budget is achieved.View Policies Current Attempt in Progress Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter is a low-volume item totaling only 6000 units per year. Flower requires 1 hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000+ 12000). Expected arnnual manufacturing overhead costs are $660000. Hartley uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O need more information to compute. O $25.38. O $20.63. O $41.25.