A production engineer want to select between to machines, machine M1 insulation cost is $14,500 and each product manufactured by M1 cost $0.75, the other machine M2 insulation cost is $12,300 and each product manufacture by M2 cost $0.8, each product is sold at price $1, based on break even analysis which machine the production engineer should select?
A production engineer want to select between to machines, machine M1 insulation cost is $14,500 and...
A company that manufactures three products, A. & and using three machines, M1, M2, and M3, wants to determine the optimal production schedule the maximizes the total profit. Product A has to be processed by machines M1, M2, and M3, product B requires M1 and M3, while product requires M1 and M2. The unit profits on the three products are $5,54 and 56, respectively. The following linear program is formulated to determine the optimal product mic Maximize S. Z-5x -...
1 2-A2 Cost-Volume-Profit and Vending Machines Vendmart Food Services Company operates and services snack vending machines located in restau- rants, gas stations, and factories in four southwestern states. The machines are rented from the manu- facturer. In addition, Vendmart must rent the space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 80 machines. Fixed monthly expenses follow: $1,768 1,600 Machine rental: 80 machines @ $22.10 Space rental: 80 locations @ $20.00...
An engineer of a manufacturing company has determined the costs of producing a new product to be as follows: Equipment cost: $600,000/year Variable cost per unit of production: $17.00 Overhead cost: $60,000/year The company is going to this project for 5 years and estimated that the product can be sold for a unit price of $45. How many units must they produced and sold each year to break even?
Week 10 - CVP Cost-Volume-Profits and Vending Machines Cola Food Services Company operates and services soft drink vending machines loca in restaurants, gas stations, factories, etc., in four Southern states. The machines are ren from the manufacturer. In addition, Cola must rent the space occupied by its machi The following expense and revenue relationships pertain to a contemplated expans program of 20 machines. Fixed monthly expenses follow: Machine rental: 20 machines @ $43.50 Space rental: 20 locations @ $28.80 Part-time...
Heinrich is a manufacturing engineer Company. He has determined the costs of producing a new product to be as follows: Equipment cost: $288,000/year Equipment salvage value at EOY5 = $ 41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning hori- zon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even? Contributed by...
Exercise (collect in room 1117) 1. We want to buy a machine.There are 3 options a. Manual machine, b. Semiautomatic machine, c. Automatic machine. Show these 3 machines on Cost versus Quantity graph (show 3 curves in 1 graph). Then, how to choose the machine based on the curve in the graph 2. Precedence diagram: First we have to do activity A, then we can do activiy B or C, AdtivityD can be done after B and C are finished,fialywe...
roduct Costs using Activity Rates Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $25 per machine hour Assembly $15 per direct labor hour Setup $53 per setup Inspecting $26 per inspection Production scheduling $16 per production order Purchasing $13...
M1 IND3. A distributor of fasteners is opening a new plant and considering whether to use a mechanized process or a manual process to package the product. The manual process will have a fixed cost of $36,234 and a variable cost of $2.14 per bag. The mechanized process would have a fixed cost of $84,420 and a variable cost of $1.85 per bag. The company expects to sell each bag of fasteners for $2.75. What is the break-even point for...
Roberta, Inc., manufactures elliptical machines for several well-known companies. The machines differ significantly in their complexity and their manufacturing batch sizes. The following costs were incurred in 2017: (Click the icon to view the costs.) Read the requirements. - X Х i Requirements 1. Classify each of the preceding costs as output unit-level, batch-level, product-sustaining, or facility-sustaining. Explain each answer. 2. Consider two types of elliptical machines made by Roberta, Inc. One machine, designed for professional use, is complex to...
CVP with Activity-Based Costing and Multiple Products Busy-Bee Baking Company produces a variety of breads. The plant manager would like to expand production into sweet rolls as well. The average price of a loaf of bread is $1. Anticipated price for a package of sweet rolls is $1.50. Costs for the new level of production are as follows: Cost Driver Unit Variable Cost Level of Cost Driver Loaf of bread $0.65 — Package of sweet rolls $0.93 — Setups $300 ...