Meile Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a
Question:
Meile Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle.
Owner Larry Meile hopes the contract will be extended and the volume increased next year. Meile has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow:"
Which process is best for thiscontract?
Transcribed Image Text:
General Purpose Equipment GPE Flexible Manufacturing Dedicated Machine DM System FMS Annual contracted units Annual fixed cost Per unit variable cost 200,000 $100,000 200,000 S200,000 200,000 S500,000 $15.00 S14.00 $13.00
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
Computation of the Best for this Contract For U units produced the ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
Alans Machine shop, Inc has a 1 year contract for the production of 200,000 gear housing for a new off road vehicle. Owner Matt Martin hopes the contract will be extended and the volume increased...
-
A process for the production of 1, 3-butadiene results from the catalytic dehydrogenation at atmospheric pressure of 1-butene according u> the reaction: C4H8(g) ( C4H6(g) + H2(g) To suppress side...
-
The following differential equations for the production of a chemical P share the properties that the rate of change at t = 0 is 5.0, and the limit as t is 0. For each, find the solution starting...
-
Peppers Lockdown produces keys for homes and cars. As Peppers is planning for next year's production, he decided to implement a high-low system to forecast future costs. With total production of...
-
A small drop of oil in water assumes a spherical shape. Explain. (Oil is made up of nonpolar molecules, which tend to avoid contact with water.)
-
An electron travels at a speed of 4.19107 m/s along the z-axis. What is the magnetic field at the point (0.00 cm,1.00 cm,1.00 cm) when the electron passes through the origin?
-
How to prepare a witness for deposition?
-
Pam Corporation holds 70 percent ownership of Northern Enterprises. On December 31, 20X6, Northern paid Pam $40,000 for a truck that Pam had purchased for $45,000 on January 1, 20X2. The truck was...
-
Indah Architectures uses job order costing to trace the costs for each project of developing bungalow houses. The company offers house plan drawings and consultation services to its customers. The...
-
This unadjusted trial balance is for Challenger Construction at the end of its fiscal year, September 30, 2020. The beginning balance of the owner?s capital account was $46,000 and the owner invested...
-
Cabinaire Inc. manufactures office furniture. It produces filing cabinets in two departments: Fabrication and Trim Assembly. Assume the following information for the Fabrication Department: Steel per...
-
Gerry Jacobs, a financial analyst for Best Value Supermarkets, has prepared the following sales and cash disbursement estimates for the period August through December of the current year. Ninety...
-
In Exercises 89 through 94, solve the given system of equations. 5x 4y = 12 2x 3y = 2
-
\ Barbara Elliott is one of the partners in Elliott & Wan. Her drawings during the year were $10,000. She made an additional capital investment of $5,000 and her share of the loss for the year was...
-
Start by completing the total federal income tax cost if Modems for All operates as part of Industrial Kitchens. Under this option, the operations will be combined and the organization will continue...
-
Suppose your investments earned a 1 1 . 5 % return last year. What return would you need this year so that you would end up earning a total return of 1 0 . 9 % over those two years? Answer in percent...
-
Pharoah Inc. reported inventory at the beginning of the year of $280000 and at the end of the year of $331000. If n $4029200 and the corresponding cost of sales totaled $2917525, what is the...
-
Wilson Industries sources from multiple suppliers and is considering the aggregation of inbound shipments to lower its costs. Truckload shipping costs $ 5 0 0 per truck along with $ 1 0 0 per pickup....
-
In an experiment to determine whether there is a systematic difference between the weights obtained with two different scales, 10 rock specimens were weighed, in grams, on each scale. The following...
-
Evaluate how many lines there are in a true rotational spectrum of CO molecules whose natural vibration frequency is w = 4.09 1014 s1 and moment of inertia I = 1.44 1039 g cm2.
-
What are some provisions that would make a lease non-tax-oriented?
-
Reliable Garage is completing production of the j2000 kit car. The following data are available for the project: a. Draw the network diagram for the project. b. Determine the projects critical path...
-
Reliable Garage is completing production of the j2000 kit car. The following data are available for the project: a. Draw the network diagram for the project. b. Determine the projects critical path...
-
The following information concerns a new project your company is undertaking: a. Draw the network diagram for this project. b. Determine the critical path and project completiontime. Activity...
-
Goal Apply Coulomb's law in one dimension. Problem Three charges lie along the x-axis as in Figure 15.7. The positive charge 91 = 17 C is at x = 4 m, and the positive charge 92 = 6 C is at the...
-
Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount...
-
How does the commodification of culture, facilitated by neoliberal market forces and consumer capitalism, impact notions of cultural value, authenticity, and creativity?
Study smarter with the SolutionInn App