Preview

Blizzard Wooden Shake Case Study

Satisfactory Essays
Open Document
Open Document
683 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Blizzard Wooden Shake Case Study
Blizzard Frost Shake

1) The amount of money I need to start of with is about $20,000 because of all the items I need to start my business. I would be using this money to open a business which I sell Slushie. To make Slushies I need items to start my work and the items I need are water, ice, Flavoured food coloring, cups, straws, blenders, and sugar. All these items are required because that is how I will make my Slushies.

|Items |Quantity |Price |Fixed or Variable? |
|Water |1000 |$4.00 each 2L ($4000) |Variable |
|Ice
…show more content…
These 5 months it will be running because of the cold season which starts in November and ends at March. During these cold weathers Slushies won’t be sold.

Production Schedule

Labour |Total Product |Marginal Product |Fixed Cost |Variable Cost |Total Cost |Marginal Cost | |0 |0 | ___ |800 |0 |800 | _______ | |1 |60 |60 |800 |160 |960 |160 | |2 |180 |120 |800 |300 |1100 |140 | |3 |260 |80 |800 |450 |1250 |150 | |4 |230 |-30 |800 |575 |1375 |125 |

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Paper cost ( 1,300 copies x .007) 9.10 Other supplies & electricity (1,300 copies x 0.004) 5.20 Total variable cost 14.30 2.) Calculate the total labor cost of these jobs Labor cost ( $ 8 x 4 hrs ) 32.00 3.) Suggest a way to assign labor and indirect costs to the cost of a copy made on that Sunday Direct Labor hours used because it is fixed and can be easily measured. 4.) Determine the full cost of one copy on the last Sunday in June, using the cost method in preceeding question. Paper cost 0.007 Other supplies & electricity Other supplies & electricity 0.004 0.004 Labor Cost (8/ hrx 4 hrs)/1300 copies 0.0246 Monthly operating cost (total cost (($5,000/30 days)/8hrs ) hourly rate ( 20.83/ hr x 4hrs )/1,300 copies 0.064 Total Full Cost per copy 0.0996 5. ) Determine the average annual full cost of one copy No. Of copies made / No. Of copies made 1,300 copies / 4hrs = 325 copies per hour Total no. Of copies made = total direct labor-hours x copies made per hour 7,280 hrs x 325 copies per hour = 2,366,000 copies Variable Cost ( 0.011 x 2,366,000 copies ) Labor cost (.0246 x 2,366,000 copies ) Other monthly cost total cost 5,000 x 12 months Total annual cost 26,026.00 58,203.60 144,000.00…

    • 657 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Course Project B Acc 505

    • 477 Words
    • 2 Pages

    AC505 Part B Capital Budgeting problem Clark Paints Cost of new equipment $200,000 Expected life of equipment in years 5 Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Initial training costs Number of workers needed 3 Annual hours to be worked per employee 2,000 Earnings per hour for employees $12 Annual health benefits per employee $7,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can $0.25 Other variable production costs per can $0.05 Costs to purchase cans - per can $0.45 Required rate of return 12% Tax rate 35% Make Purchase Annual cost of direct material: Need of 1,100,000 cans per year $275,000 0 Annual cost of direct labor for new employees: Wages 72,000 0 Health benefits 7,500 0 Other benefits 12,960 0 Total wages and benefits 92,460 Other variable production costs 55,000 Total annual production costs $422,460 0 Annual cost to purchase cans 495,000 Before Tax After Tax Item Amount Amount Annual cash savings $72,540 $0 Tax savings due to depreciation 32,000 $0 Total annual cash flow $58,351 0 1 2 3 4 5 200,000 141,649 83,298 24,947 0.43 58,351 3.43 years Accounting income as result of decreased costs Annual cash savings $72,540 Less Depreciation -32,000 Before tax income 40,540 Tax at 35% rate 14,189 After tax income $26,351 Before Tax After tax 12% PV Present Item Year Amount Tax % Amount Factor Value Cost of machine 0 $200,000 Cost of training 0 92,460…

    • 477 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    CH 11 12 13 DIAGRAM

    • 351 Words
    • 2 Pages

    Consider the situation shown in the table and Figure 10.2 (above). The Marginal Revenue Product (MRP) of the 4th worker is $__________ . 2…

    • 351 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    The Production Manager of Mom’s Cookies had a monthly production target of 100,000 bags of cookies. His target for quality inspectors is to have the reject rate less than 2% of production. Both these targets were met for August. Labour costs are up 5% because overtime had to be incurred to complete some ordersb,Both goals were met but unfortunetly labour costs went up.…

    • 434 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Cost Control Problem Set

    • 689 Words
    • 3 Pages

    Menu item |Number sold |Standard/budgeted portion cost | |A |580 |$4.45 | |B |285 |$6.20 | |C |600 |$4.15 | |D |200 |$6.00 | |E |475 |$5.95 | |F |320 |$7.05 | |G |545 |$6.10 | |H |200 |$6.95 | |Totals |3,205 | | | | | | |Solve all problems for 2 decimal places (x.xx) | | | |Food sales |$57,680.30 | | | | | | |1. Food cost $ based on standard cost figures |$17834.75 |(1 pt) | | | | | |2. Food cost % based on standard cost figures |30.92% |(1 pt) | | | | | |3. Contribution margin $ |$39845.55 |(1 pt) | | | | | |Actual inventory figures | | | |Opening inventory |$6,415.60 | | |Purchases |$19,950.30 | | |Ending inventory |$6,852.65 | | | | | | |4. Cost of goods sold $ |$19513.25 |(1 pt) | | | | | | | | | |5. Food cost % based on actual cost figures |33.83% |(1 pt) | | | | | | | | | |6. Difference between standard and actual cost in $ |+1678.5 |(1 pt) + or | | | | | |7. Difference between standard and actual cost % |+2.91% |(1 pt) + or | |…

    • 689 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Eco 550 Assignment 2

    • 2003 Words
    • 9 Pages

    For this assignment I have created Greatneck Incorporated, a manufacturer based in northeast Ohio. Greatneck Inc. key competency is its manufacturing of space heaters which is mainly distributes through the big box retail stores such as Wal-Mart, Target, Home Depot, and Lowe’s. Greatneck’s 100 workers produce 6,000 space heaters each month at a price of $32. The plant’s work schedule is for 20 days each month and each worker earns $70 per day while the variable cost for Greatneck is $2000 per day.…

    • 2003 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    At an output level of 50 units per day a firm has average total costs of $60 and average variable costs of $35. Its total fixed costs are:…

    • 515 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Chud Econ 304 Hw5

    • 829 Words
    • 4 Pages

    200 1,000 617.03 250 1,000 659.75 250 1,250 771.29 300 1,200 791.70 be written in per-worker terms:…

    • 829 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    * Determine if some of the fixed costs can be tied to the level of work and converted to variable costs…

    • 848 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Econ201

    • 557 Words
    • 3 Pages

    Kaiser’s produces fruit smoothies. The market for smoothies is perfectly competitive, and the price is $4 a smoothie. The labor market is competitive, and the wage rate is $40 per day. The following table shows relationship between the amount of labor, L, employed, and the quantity, Q, of smoothies produced each day:…

    • 557 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    u.s and global economics

    • 373 Words
    • 2 Pages

    Total Labor Cost Labor Cost Per Shirt Total Revenue Fixed Costs Total Profit Profit Per Shirt…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Pricing Strategy

    • 806 Words
    • 4 Pages

    Swing Manufacturing and Steady Manufacturing both operate in the widget industry, but with radically different cost structures. Swing is a capital-intensive, automated manufacturer, while Steady is a labor-intensive "job-shop." Monthly operating data are as follows:…

    • 806 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Juilas Food Booth Mat 540

    • 608 Words
    • 3 Pages

    Products |Costs |Sell Prices |Profits | |Pizza |0.75 |1.50 |0.75 | |Hot dog |0.45 |1.50 |1.05 | |Barbeque Sandwich |0.90 |2.25 |1.35 | |…

    • 608 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Beri-Index

    • 535 Words
    • 3 Pages

    |Political stability |3 x |3 |6 | |Economic growth |2,5 x |3 |5 | |Currency convertibility (euro) |2,5 x |4 |10 | |Labour cost/ productivity |2 x |3 |6 | |Short-term credit |2 x |3 |6 | |Long-term loans |2 x |4 |8 | |Attitude towards the foreign investor and profits |1,5 x | | | |Nationalization |1,5 x |4 |6 | |Monetary inflation |1,5 x | | | |Balance of payment |1,5 x |1 |1,5 | |Enforceability of contracts |1,5 x |2 |3 | |Bureaucratic delays |1 x | | | |Communications (internet, fax, phone….)…

    • 535 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Coffee Bean

    • 781 Words
    • 4 Pages

    Coffee Bean, Inc. (CBI) is a processor and distributor of a variety of blends of coffee. The company buys coffee beans from around the world and roasts, blends and packages them for resale. CBI currently has 40 different coffees that it offers to gourmet shops in one-pound bags. The major cost of the coffee is the raw coffee beans. However, there is a substantial amount of manufacturing overhead in the company’s predominantly automated roasting, blending and packing process. The company uses relatively little direct labor. Some of the coffees are very popular and sell in large volumes, while a few of the newer blends have very low volumes. CBI prices its coffee at manufacturing cost plus a markup of 30%. If CBI’s coffee prices are significantly higher than the market, adjustments are made to bring CBI’s prices more into alignment with the market. The company competes primarily on the quality of its products, but customers are price conscious as well. For the coming year, CBI’s budget includes estimated manufacturing overhead cost of $3,000,000. CBI assigns manufacturing overhead to products based on direct labor-hours. The expected direct labor cost totals $600,000, which represents 50,000 hours of direct labor time. Based on the sales budget and expected raw materials costs, the company will purchase and use $6,000,000 of raw materials (mostly coffee beans) during the year. The expected costs for direct materials and direct labor for one-pound bags of two of the company’s many coffee products appear below: Mona Loa $4.20 0.30 Malaysian $3.20 0.30…

    • 781 Words
    • 4 Pages
    Good Essays

Related Topics