Metters Cabinets, Inc. Operations Management
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Process Type Annualized Fixed Cost of Plant and Equip.
Homework Answers
Given data,
Annual profit = Selling price * No. of units - (Fixed cost + Variable cost * no. of units)
For this data, selling price = $120
No. of units = 40000
1. Annual profit for mass customization process type
= 120*40000 - (1260000 + (30+18+12) *40000)
= 4800000 - 3660000 = $ 1140000
2. Annual profit for intermittent process type
= 120*40000 - (1000000 + (24+26+20) * 40000)
= 4800000 - 3800000 = $ 100000
3. Annual profit for Repetitive process type
= 120*40000 - ( (1720000 + (28+15+12) * 40000)
= 4800000 – 3920000 = $ 880000
4. Annual profit for Continuous process type
= 120*40000 - (2100000 + (25+15+10)*40000)
= 4800000 – 4100000= $ 700000
a) From calculation, it is obvious that mass customization process type will maximize the profit from producing the Maxistand.
b) The value of annual profit using mass customization process is $ 1140000
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand....
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable Costs (per unit) ($) Labor Material Energy Process Type Mass Customization Intermittent Repetitive Continuous Annualized Fixed Cost of Plant & Equipment $1,200,000 $1,000,000 $1,720,000 $2,100,000 24 Metters Cabinets projects an annual demand of 60,000 units for the Maxistand. The selling price for the Maxistand is $120 per unit. a) Based...
need help with answer please !! Metters Cabinets, Inc, needs to choose a production method for...
need help with answer please !!
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Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable Costs (per unit) ($) Labor Material Energy Process Type Mass Customization Intermittent Repetitive Continuous Annualized Fixed Cost of Plant & Equipment $1,200,000 $1,000,000 $1,720,000 $2,100,000 24 Metters Cabinets projects an annual demand of 60,000 units for the Maxistand. The selling price for the Maxistand is $120 per unit. a) Based...
need help with answer please !!
Metters Cabinets, Inc, needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this the firm has gathered the following production cost data: Variable Costs (per unit) ($) Labor Annualized Fixed Cost of Plant & Equipment $1,200,000 Material Process Type Energy Mass Customization Intermittent Repetitive Continuous 30 18 12 $1,000,000 24 26 20 $1,625,000 28 15 12 $2,100,000 15 25 10 Metters Cabinets projects an annual demand of...
Current Attempt in Progress Asheville Office Equipment, Inc. manufactures custom filing cabinets. Alma Ortiz, president of Asheville Office Equipment, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations. Advertising Fire insurance premium for the factory equipment Sales office depreciation Oil for the machines used to produce the cabinets Wood used to produce the cabinets Property taxes on the factory building Freight to ship the cabinets to customers Sales department salaries Production...
Asheville Office Equipment, Inc. manufactures custom filing cabinets. Alma Ortiz, president of Asheville Office Equipment, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations. Advertising Fire insurance premium for the factory equipment Sales office depreciation Oil for the machines used to produce the cabinets Wood used to produce the cabinets Property taxes on the factory building Freight to ship the cabinets to customers Sales department salaries Production supervisors' salaries Assembly line...
by 1070? 8.18 Hyundai Motors is considering three sites-A, B, and C--at which to locate a factory to build its new-model automo- bile, the Hyundai Sport C150. The goal is to locate at a minimum cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: ANNUALIZED VARIABLE COST PER SITE FIXED COST $10,000,000 $20,000,000 $25,000,000 AUTO PRODUCED $2,500 $2,000 $1,000 The firm knows it will produce between 0...
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