a. Based on the data provided in the case (e.g., Table 2), what is the approximate level of planned plant efficiency (i.e., total SAM
a. Based on the data provided in the case (e.g., Table 2), what is the approximate level of planned plant efficiency (i.e., total SAM output planned per month, relative to total minutes of all assembly labor in the SEWMEX plant)? b. Based on the current production/sales mix, what overall (or average) efficiency level at SEWMEX is required to break even on a monthly basis? c. Prepare a table indicating the monthly pre-tax income, TB, that would result from changes in plant efficiency (as defined above in (a)) over the range 50% efficiency to 100% efficiency, in increments of 10%. Assume for purposes of this question that demand changes are the cause of monthly production changes and that SEW will continue to purchase all of SEWMEX's output. Assume, too, that the total number of assembly workers at the SEWMEX plant is unchanged.
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Authors: Andris Freivalds, Benjamin Niebel
13th edition
978-0073376363, 73376361, 978-0073376318
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