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2 years ago

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

Business

1 answer:

evablogger [386]2 years 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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Financial information for American Eagle is presented in Appendix A at the end of the book. Required: 1-a. Calculate the current

jasenka [17]

Answer:

Find the appendix attached:

Current ratio improved in 2018 from 1.83 in 2017 to 2.00 in 2018

Acid test ratio improved in 2018 from 1.10 in 2017 to 1.18 in 2018

The payment of $100 million accounts payable would make current ratio in 2017 improve from 1.83 to 2.03 and in 2018 from 2.00 to 2.25

The payment of $100 million accounts payable would make acid test ratio in 2017 from 1.10 to 1.12 and in 2018 from 1.18 to 1.22

Find computations below.

Explanation:

2018 2017

Current ratio

Current assets/current liabilities

$968,530/$485,221 2.00

$901,229/$493,783 1.83

Current ratio improved in 2018 from 1.83 in 2017 to 2.00 in 2018

2018 2017

Acid test ratio

(Current assets-inventory)/current liabilities

($968,530-$398,213)/$485,221 1.18

($901,229-$358,446)/$493,783 1.10

Acid test ratio improved in 2018 from 1.10 in 2017 to 1.18 in 2018

Impact of $100,000,000 cash used in settling accounts payable:

2018 2017

Current ratio

Current assets/current liabilities

($968,530-$100,000)/($485,221-$100,000) 2.25

($901,229-$100,000)/$493,783-($100,000) 2.03

The payment of $100 million accounts payable would make current ratio in 2017 from 1.83 to 2.03 and in 2018 from 2.00 to 2.25

2018 2017

Acid test ratio

(Current assets-inventory)/current liabilities

($968,530-$398,213-$100,000)/($485,221-$100,000) 1.22

($901,229-$358,446-$100,000)/($493,783-$100,000) 1.12

The payment of $100 million accounts payable would make acid test ratio in 2017 from 1.10 to 1.12 and in 2018 from 1.18 to 1.22

Download xlsx

5 0

2 years ago

Review the Globe to determine Baldwin's current strategy. How will they seek a competitive advantage

Anestetic [448]

This question is incomplete, the complete question is;

Review the Inquirer to determine Baldwin's current strategy. How will they seek a competitive advantage?

From the following list, select the top five sources of competitive advantage that Baldwin would be most likely to pursue. Select: 5 Save Answer Add additional products Offer attractive credit terms Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand Reduce cost of goods through TQM initiatives Seek high plant utilization, even if it risks occasional small stock outs Increase demand through TQM initiatives Seek excellent product designs, high awareness, and high accessibility Seek high automation levels Seek the lowest price in their target market while maintaining a competitive contribution margin Reduce labor costs through training and recruitment.

Answer:

1) Reduce labor costs through training and recruitment

2) Seek the lowest price in their target market while maintaining a competitive contribution margin

3) Reduce cost of goods through TQM initiatives

4) Seek excellent product designs, high awareness, and high accessibility

5) Seek high plant utilization, even if it risks occasional small stock outs

Explanations

The top resources that will help Baldwin to attain competitive advantage are shown below

Reduce labor costs through training and recruitment- Lower labor costs would help Baldwin maintain higher profit levels, giving Baldwin an edge over its competitors. This would be an example of a Cost Leadership strategy.

Seek the lowest price in their target market while maintaining a competitive contribution margin- Baldwin can focus on target markets and offer its products/ services at the lowest prices with competitive. This would help Baldwin get a very good reach and hold on the target markets, and would get ahead of its customers in the process. This would be an example of a Focus strategy.

Reduce cost of goods through TQM initiatives- Lower cost of goods would mean higher profits for Baldwin, giving it a competitive edge. This would be an example of a Cost Leadership strategy.

Seek excellent product designs, high awareness, and high accessibility- With excellent product designs, high awareness and accessibility, Baldwin would be able to make its products stand out from its competitors' products. When customers see a product which is different from others, which offers good benefits and which is easily available, they definitely get interested in that product and may even pay a little more to buy the product. This is an example of a Differential strategy.

Seek high plant utilization, even if it risks occasional small stock outs- With high plant utilization, Baldwin can optimize its fixed costs, thereby lowering total costs which shall give it a competitive edge. This again would be an example of a Cost Leadership strategy. Losses due to occasional small stock outs would be compensated by high plant utilization.

5 0

2 years ago

A rich donor gives a hospital $1,040,000 one year from today. Each year after that, the hospital will receive a payment 6% large

alina1380 [7]

Answer:

$7,681,257.74

Explanation:

Since the hospital will receive a payment 6% larger than the previous payment each year after the first payment, the formula for the Present Value of a Growing Annuity is used to obtain the present value.

The present value of a growing annuity formula is meant for the estimation of the present day value different payments hat grow at a proportionate rate which will be received for a period of time. This formula is stated as follows:

PV = {P ÷ (r - g)} × {1 - [(1+g)÷(1+r)]^n] ...................................... (1)

Where

PV = Present value

P = First payment = $1,040,000

r = interest rate = 11% = 0.11

g = growth rate = 6% = 0.06

n = number of years = 10 years

Substuiting all the values into equation (1), we have:

PV = {$1,040,000 ÷ (0.11 - 0.06)} × {1 - [(1+0.6)÷(1+0.11)]^10]

= {$1,040,000 ÷ (0.05)} × {1 - [(1.06)÷(1.11)]^10]

= $20,800,000 × (1 - 0.630708763)

= $20,800,000 × 0.369291237

= $7,681,257.74

I wish you the best.

6 0

2 years ago

H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional

EastWind [94]

Answer:

The correct answer is the option B: Quick response (QR)

Explanation:

To begin with, a <em>quick response inventory system</em> involves the intention of shorten the lead time from receiving an order to delivery of the products and increase the amount of cash flow. Moreover, this system focuses primarily in the reduction of the time that the stuff is stuck in the inventory in order to avoid the low stock rotation and in that way to try to increase the sales that the company has. And in that way the company can receive the merchandise in time in order to sale it or to use it for another product.

4 0

2 years ago

Read 2 more answers

On January 1, 20X5, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the nonco

meriva

Answer:

$680,000

Explanation:

Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.

Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000

8 0

2 years ago