Homework Answers
The total cost and revenue for each process is as follows
| A | B | |
| Total Material Cost | 6250 | 5750 |
| Total Variable operating cost | 630 | 784 |
| Total overhead cost | 560 | 624 |
| Total cost | 7440 | 7158 |
| Number rejected | 100 | 87.4 |
| Defect-free unit | 150 | 142.6 |
| Revenue from reject | 1100 | 961.4 |
| Revenue from defect-free | 31500 | 29946 |
| Total Revenue | 32600 | 30907.4 |
| Profit | 25160 | 23749.4 |
Therefore, daily profit for process A is higher than that of B. The firm should adapt process A to maximize daily profit.
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1. Compute Jupiter’s new break-even point if the proposed
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2. Determine how many units Jupiter will have to sell
to show a profit of $140,000, assuming the new technology is
adopted.
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Colt Company owns a machine that can produce two specialized products. Production time for Product TLX...
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for Product MTV is four units per hour. The machine’s capacity is
2,500 hours per year. Both products are sold to a single customer
who has agreed to buy all of the company’s output up to a maximum
of 4,250 units of Product TLX and 1,980 units of Product MTV.
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Colt Company owns a machine that can produce two specialized
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for Product MTV is five units per hour. The machine’s capacity is
2,750 hours per year. Both products are sold to a single customer
who has agreed to buy all of the company’s output up to a maximum
of 4,700 units of Product TLX and 2,500 units of Product...
2) A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows Process 1 Process 2 Production rate Daily production time Percent of parts rejected based on visual inspection 35 parts/hour 4 hours/day 20% 15 parts/hour 7 hours/day 9% Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold Find the process that maximizes profit...
1. Compute Jupiter’s new break-even point if the proposed
automated equipment is installed.(in units)
2. Determine how many units Jupiter will have to sell
to show a profit of $140,000, assuming the new technology is
adopted.
Required information Problem 7-47 Continuation of Preceding Problem; Activity-Based Costing; Advanced Manufacturing Systems; Ethical Issues (LO 7-4, 7-9, 7-10) [The following information applies to the questions displayed below.) Jupiter Game Company manufactures pocket electronic games. Last year Jupiter sold 25,000 games at $25 each. Total...
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2. Priceler manufactures sedans and wagons. The number of vehicles that can be sold each of the next three months are listed to Table 1. Each sedan sells for $10000 and each wagon sells for $11000. It cost $7000 to produce a sedan and $8000 to produce a wagon. To hold a vehicle inventory for one month cost $160 per sedan and $210 per wagon. During each month, at most 1600 vehicles can be produced Production line restrictions dictate that...
Youngstown Glass Company manufactures three types of safety
plate glass: large, medium, and small. All three products have high
demand. Thus, Youngstown Glass is able to sell all the safety glass
that it can make. The production process includes an autoclave
operation, which is a pressurized heat treatment. The autoclave is
a production bottleneck. Total fixed costs are $320,000 for the
company as a whole. In addition, the following information is
available about the three products:
Large
Medium
Small
Unit...
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is four units per hour. The machine's capacity is 2,300 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 3,910 units of Product TLX and 1,840 units of Product MTV. Selling prices and variable costs per unit to...
Colt Company owns a machine that can produce two specialized
products. Production time for Product TLX is two units per hour and
for Product MTV is four units per hour. The machine’s capacity is
2,500 hours per year. Both products are sold to a single customer
who has agreed to buy all of the company’s output up to a maximum
of 4,250 units of Product TLX and 1,980 units of Product MTV.
Selling prices and variable costs per unit to...
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machine's capacity is 2,300 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 3,910 units of Product TLX and 2.105 units of Product MTV. Selling prices and variable costs per unit to...
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