3. Two options are under consideration for a machine that makes hard candy. Machine A has...
3. Two options are under consideration for a machine that makes hard candy. Machine A has fixed cost of 8,901 and a variable cost of 0.45 per pound. Machine B has a fixed cost of 7,599 and a variable cost of 0.52 per pound. At what production amount (pounds) is the total cost of each machine equal?
4. A third option has been proposed by salesman who says the machine is worth the extra cost (a fixed cost of 10,401) when the volume is 25,000 or above. What is the maximum variable cost of this product if the salesman’s claim is true?
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3. Two options are under consideration for a machine that makes
hard candy. Machine A has...
The machines shown below are under consideration for an improvement to an automated candy bar wrapping!...
The machines shown below are under consideration for an improvement to an automated candy bar wrapping! process. First cost, $ Annual cost, $/year Salvage value, $ Life, years (Source: Blank and Tarquin) Machine C 40,000 -15,000 12.000 Machine D -75,000 -10,000 25.000 Based on the data provided and using an interest rate of 5% per year, the Annual Worth “AW" of Machine C is closest to (All the alternatives presented below were calculated using compound interest factor tables including all...
Question 3 (10 points) The machines shown below are under consideration for an improvement to an...
Question 3 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ -50.000 -65,000 Annual cost, S/year -9,000 -10,000 Salvage value, S 12.000 25,000 Life. years (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth "AW" of Machine C is: AWC-50,000(P/A, 8%, 3) + 12,000(F/A, 8%, 3)...
1. Phi Upsilon Nu, a student social organization, has two different locations under consideration for constructing...
1. Phi Upsilon Nu, a student social organization, has two different locations under consideration for constructing a new chapter house. PhUN's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: ANNUAL OPERATING COSTS LOCATION FIXED VARIABLE Alpha Ave. $5,000 $200 per person Beta Blvd. $8,000 $150 per person What would be total annual costs for either location at the...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Fishing Guard 275 Ski Guard 230 $ 80 $ 12 minutes 14 pounds Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Golf Guard 320 $ 160 $ 8 minutes 15 pounds 140 5 minutes 13 pounds If we assume that the total...
Patterson Products Inc. is considering an upgrade to its manufacturing equipment. The two upgrade options under...
Patterson Products Inc. is considering an upgrade to its
manufacturing equipment. The two upgrade options under
consideration are shown below.
Option 1
Option 2
Direct material cost per unit
$
93.6
$
62.4
Direct labour cost per unit
$
66
$
59
Variable overhead per unit
$
27.6
$
55.4
Fixed manufacturing costs
$
2,160,000
$
5,592,000
The selling price of the company’s product is $312 per unit with
variable selling costs of 10% of sales. Fixed selling and
administrative...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s mo...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $ 250 $ 340 $ 265 Variable cost per unit $ 80 $ 140 $ 115 Plastic injection molding machine processing time required to produce one unit 5 minutes 6 minutes 3 minutes Pounds of plastic pellets per unit 6 pounds 15 pounds 6 pounds Required: 1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Guard Golf Guard 250 $ 170 $ Fishing Guard 185 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 5 minutes minutes 9 pounds 2 minutes 7 pounds 9 pounds Required: 1. If we assume that the total time available on the plastic...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. points Skipped Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Ski Golf Guard Guard 320 $ 320 $ 119 $ 139 $ 13 minutes 10 minutes 12 pounds 7 pounds Fishing Guard 275 95 2 minutes 14 pounds eBook Required: 1. If...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard 270 $ 160 $ Golf Guard 250 $ 170 $ Fishing Guard 185 85 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 5 minutes 9 pounds 6 minutes 9 pounds 2 minutes 7 pounds Required: 1. If we assume that...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard 240 $ 120 $ Golf Guard 330 $ 180 $ Pishing Guard 285 130 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 11 minutes 9 pounds 8 minutes 15 minutes 6 pounds 15 pounds Required: 1. If we assume that...
The machines shown below are under consideration for an improvement to an automated candy bar wrapping! process. First cost, $ Annual cost, $/year Salvage value, $ Life, years (Source: Blank and Tarquin) Machine C 40,000 -15,000 12.000 Machine D -75,000 -10,000 25.000 Based on the data provided and using an interest rate of 5% per year, the Annual Worth “AW" of Machine C is closest to (All the alternatives presented below were calculated using compound interest factor tables including all...
Question 3 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ -50.000 -65,000 Annual cost, S/year -9,000 -10,000 Salvage value, S 12.000 25,000 Life. years (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth "AW" of Machine C is: AWC-50,000(P/A, 8%, 3) + 12,000(F/A, 8%, 3)...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Fishing Guard 275 Ski Guard 230 $ 80 $ 12 minutes 14 pounds Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Golf Guard 320 $ 160 $ 8 minutes 15 pounds 140 5 minutes 13 pounds If we assume that the total...
Patterson Products Inc. is considering an upgrade to its
manufacturing equipment. The two upgrade options under
consideration are shown below.
Option 1
Option 2
Direct material cost per unit
$
93.6
$
62.4
Direct labour cost per unit
$
66
$
59
Variable overhead per unit
$
27.6
$
55.4
Fixed manufacturing costs
$
2,160,000
$
5,592,000
The selling price of the company’s product is $312 per unit with
variable selling costs of 10% of sales. Fixed selling and
administrative...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Guard Golf Guard 250 $ 170 $ Fishing Guard 185 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 5 minutes minutes 9 pounds 2 minutes 7 pounds 9 pounds Required: 1. If we assume that the total time available on the plastic...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. points Skipped Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Ski Golf Guard Guard 320 $ 320 $ 119 $ 139 $ 13 minutes 10 minutes 12 pounds 7 pounds Fishing Guard 275 95 2 minutes 14 pounds eBook Required: 1. If...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard 270 $ 160 $ Golf Guard 250 $ 170 $ Fishing Guard 185 85 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 5 minutes 9 pounds 6 minutes 9 pounds 2 minutes 7 pounds Required: 1. If we assume that...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard 240 $ 120 $ Golf Guard 330 $ 180 $ Pishing Guard 285 130 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 11 minutes 9 pounds 8 minutes 15 minutes 6 pounds 15 pounds Required: 1. If we assume that...
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