2. Using budget data, what was the total expected cost per unit if all manufacturing and…
After a careful review and analysis of your annual costs and income, our team has some suggestions on how to best make a profit for your business. It seems that the prices you are charging for your products too low to cover all of your costs. Since the main constraint in your business is your time, we determined a rate that you should charge per minute of your time in order to make a profit. We then came up with a price per piece that we suggest that you charge according to how much time it takes for you to make the product ready to sell. Our suggested pricing is as follows:…
Mr. Mark Tanner bought Therm-eze from its inventor for a total price of $250 000 which included the Canadian manufacturing and distribution rights. He also obtained a 17 year patent on the product in Canada. Mark Tanner will spend 50 cents for the vinyl bag which will be produced by an outside vendor. The die which will be paid for by the Tanner Company will cost $1000. The sodium acetate solution which will be purchased by an Ontario Supplier will cost $1 per bag. When Mark Tanner bought the company from the inventor he received 150 000 stainless steel triggers and any additional triggers need it will cost $1.50 per unit. The felt covers and packaging will cost $0.75 per unit available from local suppliers. As well Mark Tanner pays one welder and three unskilled workers to complete the filling and sealing process a wage of $ 37.50 per hour. Also he hired Richard McKay an experienced sales person a salary of $ 40 000 per year (Preshing& Walters, N.D).…
Company A's re-proportioned formula is sold under a private label Brand Y. Contribution to profit with Brand Y is $30 per case.…
Cumberland Metal Industries (CMI) is one of the largest manufacturers of curled metal products in the U.S. The company started the business by making highly technical applications, but soon changed from selling the finished products to selling the products that were considered as raw materials for other products. By doing so, the company experienced a dramatic growth in the 1970’s and occupied 80% of the market share. However, the managers were not sanguine about the future since there was a slightly decrease in sales and net income in 1979. Therefore, the company developed a new cushion pad to boost company’s revenue. The performance of the new product was really impressive in the test and the test company Colerick was eager to make the purchase. The only problem left is to decide what price should the company charge for the new product, and it is a decision case.…
2) BB currently uses 3,000 ingots of aluminum each year to manufacure bracelet blanks. The order cost (including shipping) is $5,000 per order, and carrying costs are $75 per unit per year. Determine the economic order quantity, the amount of safety stock, and the reorder point for aluminum ingots assuming there is a 1-week lead time and the firm would like a safety stock of 3%.…
3. . A shop that makes candles offers a scented candle, which has a monthly demand of 360 boxes. Candles can be produced at a rate of 36 boxes per day. The shop operates 20 days a month. Assume that demand is uniform throughout the month. Setup cost is $60 for a run, and holding cost is $2 per box on a monthly basis.…
Fineprint Company, owned and managed by John Johnson, prints high color brochures for its clients primarily in the central Virginia area. The facility is located at Charlottesville, Virginia.…
In this case, the two particular products being considered are two pharmaceutical chemicals, Highcal and Relax. The costs of producing and distributing this product include fixed costs of the plant, chemical fixed costs, raw materials. production costs, transportation costs to markets, and import tariffs when shipping the product to another country.…
3. What should be the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping?…
Data for the 20x5 budget include manufacturing overhead of $12,000,000, which has been allocated on the basis of each product’s direct-labor cost. The budgeted direct-labor cost for 20x5 totals $1,200,000. Based on the sales budget and raw-material budget, purchases and use of raw materials (mostly coffee beans) will total $5,800,000.…
The objective of the case study is to determine the correct pricing that Lipman Bottle Company must adapt to ensure that they would continue to be profitable and achieve the company’s goal of reaching 30% margin.…
ABC Ltd. Produces room coolers. The company is considering whether it should continue to manufacture air circulating fans itself or purchase them from outside. Its annual requirement is 25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition, ABC Ltd will have to incur costs of Rs 1.50 per unit for freight and Rs 10,000 per year for quality inspection, storing etc of the product.…
A. The manager needs to decide if it is worth only making a revenue of $12 per 100 units by only producing the 100 or to make the 1000 units and have extra. With making just the 100, the extra expense for the special plastic covers make the commission go from $7 per 100 cones to $12 per 100 cones. This helps cut the costs because the direct labor of the store attendant and rent are not included because they are making the cones during slack periods and do not require additional time for employees.…