Homework Answers
| A-1 | ||
| Machine 2 | ||
| Bottleneck is the department due to which production gets restricted. Machine 2 restricts the production to 800,000 units. | ||
| B-1 | ||
| Particulars | Total | Workings |
| Differential Revenue | $1,760,000.00 | 200000*8.8 |
| Differential Costs | ||
| Variable | $880,000.00 | 200000*(3.7+0.7) |
| Fixed Costs | $740,000.00 | $740,000.00 |
| Differential Operating Profit | $140,000.00 | D5-D7-D8 |
| B-2 | ||
| Yes | ||
| C-1 | ||
| Particulars | Total | Workings |
| Differential Revenue | $880,000.00 | 100000*8.8 |
| Differential Costs | ||
| Variable cost increase on current production | $352,000.00 | 800000*(4.14-3.7) |
| Variable cost increase on new production | $414,000.00 | 100000*4.14 |
| Differential Operating Profit | $114,000.00 | D17-D19-D20 |
| C-2 | ||
| Yes | ||
Add Answer to:
Exercise 4-51 Theory of Constraints (LO 4-5) Playful Pens, Inc., makes a single model of a...
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which...
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one machine. The cartridge holder (which you hold when you use the pen) is manufactured on another machine. Monthly capacities and production levels are as follows: Machine 1 (Cartridge) Machine 2 (Holders) Monthly capacity 1,000,000 800,000 Monthly production 800,000 800,000 The company could sell 1,000,000 pens per month. The units (cartridge inside of holder) sell for $11.20 each...
Exercise 4-50 Theory of Constraints (LO 4-5) Comp Desk, Inc., makes a single model of an...
Exercise 4-50 Theory of Constraints (LO 4-5) Comp Desk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1. and the chair is manufactured in building 2. Monthly capacities and production levels are as follows: Building 1 {Desks) Building 2 (Chairs) 400 Monthly capacity Monthly production 500 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows: Building 1 (Desks) Building 2 (Chairs) Monthly capacity 400 500 Monthly production 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $309 each and have...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1. and the chair is manufactured in building 2 Monthly capacities and production levels are as follows. Building 1 (Desks) Building 2 (Chairs) Monthly capacity 400 509 Monthly production 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $315 each and have...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows. Monthly capacity Monthly production Building 1 (Desks) 600 600 Building 2 (Chairs) 750 600 The company will sell a desk only with a chair and can sell 750 desks per month. The units (desk with chair) sell for $300 each and have...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The...
CompDesk, Inc., makes a single model of an ergonomic desk (with
chair) for computer usage. The desk is manufactured in building 1,
and the chair is manufactured in building 2. Monthly capacities and
production levels are as follows.
The company will sell a desk only with a chair and can sell 500
desks per month. The units (desk with chair) sell for $285 each and
have a variable cost of $120 each.
Required:
a. Is there a bottleneck at CompDesk...
value 20.00 points CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for...
value 20.00 points CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows: Building 1 (Desks) Building 2 (Chairs) Monthly capacity 400 500 Monthly production 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $324...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows: Building 1 (Desks) Building 2 (Chairs) Monthly capacity 400 500 Monthly production 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $279 each and have...
b. CompDesk's production supervisors state they could increase building 1's capacity by 100 desks per month...
b. CompDesk's production supervisors state they could increase building 1's capacity by 100 desks per month by producing desks on the weekend. Producing on the weekend would not affect the sales price. Variable cost per unit would increase by $26 for those produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $20,200 per month. b-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a...
Inscribe, Inc. manufactures and sells pens for $6.00 each. Cubby Corp. has offered Inscribe, Inc. $4.00...
Inscribe, Inc. manufactures and sells pens for $6.00 each. Cubby Corp. has offered Inscribe, Inc. $4.00 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen is $1.00 per unit and consists of variable costs of $0.80 per pen and fixed overhead costs of $0.20 per pen. Assume that Inscribe, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would...
Exercise 4-50 Theory of Constraints (LO 4-5) Comp Desk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1. and the chair is manufactured in building 2. Monthly capacities and production levels are as follows: Building 1 {Desks) Building 2 (Chairs) 400 Monthly capacity Monthly production 500 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1. and the chair is manufactured in building 2 Monthly capacities and production levels are as follows. Building 1 (Desks) Building 2 (Chairs) Monthly capacity 400 509 Monthly production 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $315 each and have...
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows. Monthly capacity Monthly production Building 1 (Desks) 600 600 Building 2 (Chairs) 750 600 The company will sell a desk only with a chair and can sell 750 desks per month. The units (desk with chair) sell for $300 each and have...
CompDesk, Inc., makes a single model of an ergonomic desk (with
chair) for computer usage. The desk is manufactured in building 1,
and the chair is manufactured in building 2. Monthly capacities and
production levels are as follows.
The company will sell a desk only with a chair and can sell 500
desks per month. The units (desk with chair) sell for $285 each and
have a variable cost of $120 each.
Required:
a. Is there a bottleneck at CompDesk...
value 20.00 points CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows: Building 1 (Desks) Building 2 (Chairs) Monthly capacity 400 500 Monthly production 400 400 The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $324...
b. CompDesk's production supervisors state they could increase building 1's capacity by 100 desks per month by producing desks on the weekend. Producing on the weekend would not affect the sales price. Variable cost per unit would increase by $26 for those produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $20,200 per month. b-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a...
Inscribe, Inc. manufactures and sells pens for $6.00 each. Cubby Corp. has offered Inscribe, Inc. $4.00 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen is $1.00 per unit and consists of variable costs of $0.80 per pen and fixed overhead costs of $0.20 per pen. Assume that Inscribe, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would...
Most questions answered within 3 hours.
-
You are __________ to commit a Type I error using the 0.05 level
of significance than...
asked 9 minutes ago -
1. the following results are obtained:
200
kiwi
575 wild-type
What can we conclude about the...
asked 14 minutes ago -
Explain how you might use E. coli bacteria to produce human
growth hormone using the following:...
asked 15 minutes ago -
WHAT IS THE EFFEKT OF ADD K2CO3 TO ( METHANOL OG WATER)?
asked 29 minutes ago -
Calculate the cell potential, the equilibrium constant, and the
free-energy change for: Ca(s)+Mn2+(aq)(1M)⇌Ca2+(aq)(1M)+Mn(s) given
the following...
asked 27 minutes ago -
Determine the pH at the equivalence (stoichiometric) point in
the titration of 48 mL of 0.28...
asked 26 minutes ago -
11. In CPM/PERT, an activity that is on the critical path
A. has equal values for...
asked 33 minutes ago -
Using C++ :
A Pascals triangle row is constructed by looking at the previous
row and...
asked 50 minutes ago -
With what speed will the fastest photoelectrons be emitted from
a surface whose threshold wavelength is...
asked 50 minutes ago -
The following slope distances and differences in elevations
between the tape ends were recorded for a...
asked 52 minutes ago -
1. Assuming random walk markets and normally distributed
returns, if a one day VaR on an...
asked 1 hour ago -
(a) With a variable life insurance policy, the rate of return on
the investment (the death...
asked 1 hour ago