Sample Response: The text uses graphs, charts, tables, headings, and subheadings to help the reader find and understand important information. The headings organize the text in a logical way and help the reader identify main ideas. The tables and graphs provide specific data that both support and supplement the information in the text. These features are effective aids to understanding.
Answer:
His maximum inventory level would be 180 units
Explanation:
According to the given data we have the following:
daily demand rate , d=1,600/200=8 units;
daily production rate p=80 units;
C0=25 dollar
Cc=2 dollar
Therefore, Qopt=√2*25*1,600/(2(1-8/80))
Qopt=210.82
But here Rolf decide to produce 200 units each time he started production, hence fix Q=200
Therefore, Maximum inventory level=200*(1-8/80)=200*0.9
Maximum inventory level=180 units
His maximum inventory level would be 180 units
Answer:
Price variance will be $4512.5 ( Unfavorable )
Explanation:
We have given standard material cost per yard = $2
Actual material cost per yard = $2.10
Standard yards per unit = 4.5
And actual yards per unit = 4.75
Units of production = 9500
Total number of actual quantity used = 9500×4.75 = 45125
So direct material price variance = ( standard price - actual price ) × actual quantity used = ( $2 - $2.1 ) × 45125 = -$4512.5
So price variance will be $4512.5 ( Unfavorable )
Answer:
Current Operation (purchase of cookies) - $0.60
Alternative - $0.2 materials
$0.15 direct labor
$0.45 without increasing capacity of which $0.3 is fixed - meaning it would still be incurred at current capacity
<u> Mel's Meals Evaluation of Alternatives</u>
Purchase Produce
$ $
Cost to Buy 0.6 -
Materials - 0.2
Direct Labor - 0.15
Overhead (Variable) - 0.15
Total Cost 0.6 0.5
Decision: Mel should not continue buying them as she would be saving $0.1 for every lunch meal.
Since there would not be an increase in the total fixed overhead if Mel's makes the cookies in-house, then the $0.3 fixed overhead is not significant in calculating the cost of producing.
Explanation:
The differential cost in this instance is $0.1 as Mel's saves that for every cookie made which multiplied by the number included in the box and by the total box prepared and sold gives = 0.1 * 2 * 10000 = $2,000 saved for making
