Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. the restaurant value stream map, and recompute the total value-added and non-value-added time and cost given the following new information. The chef's time is

1. the restaurant value stream map, and recompute the total value-added and non-value-added time and cost given the following new information. The chef's time is valued at $30 per hour, oven operation at $10 per hour, precooking order waiting time at $5 per hour, and postcooking order waiting time at $60 per hour. The $60 estimate reflects the cost of poor quality for a dinner waiting too long that might be delivered to the customer late (and cold). If a restaurant uses iPads to place orders and notify waiters when the customer's order is ready, the time on the order board (now an electronic order board) decreases from five to three minutes, and the prepared order wait time decreases from five to three minutes. Round your answer for the total revised time to the nearest whole number and round your answer for the total revised cost to three decimal places.

Total Revised Time: _____ minutes

Total Revised Cost: ___________$

2.Samoset Fans, Inc. manufacturers its fan blades in-house. The owner, Betty Dice, doesn't outsource any fan parts except fan motors all other fans parts are made in-house. Their current process and its equipment are getting old. Maintenance and repair costs are increasing at twelve percent per year. She and her company team are evaluating two new processes. The first process has an annual fixed cost of $800,000 and a variable cost of $19 per fan blade. The second process is more automated and requires an annual fixed cost of $1,200,000 and a variable cost of $17 per fan blade. The internal transfer cost of a fan blade is $21, and this helps the firm determine the total manufactured cost of a completed fan. Use the Excel template Break-Even in MindTap to answer the following questions:

A. What is the break-even quantity between these two processes? Round your answer to the nearest whole number.

__________ fan blades

B.If predicted demand for next year is 120,000 blades, what process do you recommend? Round your answers to the nearest dollar.

Total cost of Process A: ________$

Total cost of Process B:_________ $

So, -Select-Process AProcess BItem 4 is recommended.

C. What is the cost savings? Round your answer to the nearest dollar.

$____________

D. What volume of demand does Samoset Fans, Inc need to make an internal profit on fan blades of $110,000, assuming they installed the process you recommend in part (b)? Round your answer to the nearest whole number.

_______fan blades

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian Edition

1119497043, 978-1119497042

More Books

Students also viewed these Accounting questions

Question

2. I try to be as logical as possible

Answered: 1 week ago