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1 year ago

Holton Company makes three products in a single facility. Data concerning these products follow:

Business

1 answer:

evablogger [386]1 year ago

8 0

Answer:

86,700 minutes

Explanation:

a. Demand on the mixing machine:

Minutes required to produce 3000 units of A (3000 x 26.9) 80700

Minutes required to produce 1000 units of B (1000 x 2) 2000

Minutes required to produce 2000 units of C (2000 x 2) 4000

Total minutes = 86,700 minutes

Therefore, in order to satisfy the demand for all of the products they would need 86,700 minutes of mixing machine time,

but they only have 14,000 minutes available for each month.

This means that they cannot satisfy the demand with the number of minutes that they have available.

b.Optimal production plan:

Product A Product B Product C

Selling price per unit $ 137.10 $ 74.80 $ 167.60

Direct materials $ 59.70 $ 41.70 $ 100.70

Direct labor $ 43.00 $ 13.30 $ 29.50

Variable manufacturing overhead $ 8.20 $ 4.30 $ 13.80

Variable selling cost per unit $ 15.20 $ 3.10 $ 8.50

Total variable cost per unit $ 126.10 $ 62.40 $ 152.50

Contribution margin per unit $ 11.00 $ 12.40 $ 15.10

Mixing minutes per unit 26.90 2.00 2.00

Contribution margin per minute $0.41 $6.20 $7.55

Rank in terms of profitability 3 2 1

Optimal production 223 1,000 2,000

c. The company should be willing to pay $0.41 for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity for Product A.

For Product B the company should be willing to pay $6.20, and $7.55 for Product C.

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Answer:

a. The three generic strategies

b. Value chain analysis

e. SWOT Analysis

g. The Five Forces Model

Explanation:

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The three generic strategies are used to determine if the organization intends to compete from a position of cost leadership (offering low cost products), product differentiation (offering unique, high quality products) or choosing a specific niche to serve.

When managers use the SWOT analysis, they analyse the strengths and weaknesses of their organization as well as those of competitors, and also look out for opportunities to improve, and threats to be avoided.

Managers use the Value chain analysis, to determine how to reduce cost, improve profitability and increase value for customers, by monitoring the various processes involved, in production and delivery of goods, as well as after sale customer service.

Porter's five forces model is used by managers to determine the extent and strength of competition in an industry and what industry to enter or avoid. It also provides information on the bargaining power of buyers and suppliers in the market and the threat of substitute products to the organization's products.

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1 year ago

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Topic: The Consumer and Business Market To increase revenue, many businesses, such as gift basket, insurance, tax preparation, f

sp2606 [1]

Answer:

Check the explanation

Explanation:

B2B decisions are made between business entities (business and wholesaler, wholesaler and retailer) while B2C decisions are made between business and individuals (business and individual customers). Decision Making Units (DMU) is common in B2B and B2C decisions.

In a B2B, the key DMU includes economic buyer, infrastructure buyer and the user buyer. The economic buyer is the person buying a product, infrastructure buyer is the person providing infrastructure to make the purchase happen and the user buyer is the person supplying the product.

In the case of a decision-making process in a B2C, the DMU is a group of people making the decisions on the purchase of goods. B2C decision making consists of a buying center with users, buyers, influencers, gatekeepers and deciders.

The buying center is the key DMU in a B2C segment. The initiators in the buying center offer suggestions in a product purchase. The influencers provide their opinions in a product purchase. The buyers are the persons responsible for the entire contract. The gatekeepers control the information flow. Deciders take the final decision on a purchase. End users purchase the final product and use the item.

Consider the restaurant or fast food business that predominantly targets the corporate employees. In this case, a B2B decision-making process can be used to get more customers and improve their sales.

The economic buyer in this case is the employee of the corporate, the infrastructure buyer is the corporate entity and the user buyer is the fast food company supplying the food item. In this manner, a network with various corporate entities in the local area could improve the sales of the fast food company.

Similarly, a B2C decision-making process can be used to improve the sales by directly selling to the employees of the corporate and other people requiring fast food delivery at home through a mobile app.

In the decision-making process of B2C, the buyers are the fast food company, influencers may the persons including friends, family members and other entities, end users are the persons purchasing food through mobile app and gatekeepers are the persons responsible for maintaining the mobile app.

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1 year ago

On January 10, Year 1, Wayne, Inc., purchased 5,000 of Jason bonds at $60 par per bond. The purchase is a long-term investment a

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Answer:

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Explanation:

the carrying value at December 31, Year 1 = 5,000 shares x $60 per share = $300,000

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In the case of dormant cracks wider than about 1m, it is more economical to use ____________

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Answer:

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