- Calculate the target cost for maintaining current market share and profitability. (Do not round intermediate calculations. Round your answer to 2 decimal places).
3a. What time, in seconds, for this product? (Round your final answer to the nearest whole number).
3b. Is the processing line properly balanced for this product?
MaxiDrive manufactures a wide variety of parts for recreational boating, including a gear and driveshaft part for high- powered outboard boat engines. Original equipment manufacturers such as Mercury and Honda purchase the components for use in large, powerful outboards. The part sells for $670, and sales volume averages 29,000 units per year. Recently, MaxiDrive's major competitor reduced the price of its equivalent unit to $594. The market is very competitive, and MaxiDrive realizes it must meet the new price or lose signicant market share. Management has begun paying closer attention to costs and has reconfirmed the current existing standard costs. The controller then assembled the following cost and usage data for the most recent year for MaxiDrive's production of 29,000 units: Budgeted Budgeted Actual Actual Quantity Cost Quantity Cost Direct materials $ 6,900,000 $ 7,400,00( Direct labor 2,660,000 2,825,00l Indirect labor 2,660,000 2,600,00( Inspection (hours and cost) 1,080 380,000 1,400 390,00l Materials handling (number of purchases and cost) 4,700 700,000 3,850 685,00l Machine setups (number and cost) 1,800 950,000 1,900 925,00( Returns and rework (number of times and cost) 380 120,000 580 170,00( $14,370,000 $14,995,00l Required: 1. Calculate the target cost for maintaining current market share and protability. (Do not round intermediate calculations. Round your answer to 2 decimal places.) :| Johnson Electronics manufactures a power supply used in a variety of electronics products, including printers, modems, and routers. The demand for the part is 7,400 units per week. The production of the power supply requires six different manufacturing operations, each in sequence and each having the following processing times. The net available time to work is 46 hours per week, using two shifts. Processing Time Operation ( seconds ) Operation 1 16 Operation 2 13 Operation 3 22 Operation 4 15 Operation 5 28 Operation 6 19 [ Required: 1. What is the Takt time, in seconds, for this product? (Round your final answer to the nearest whole number.) 2. Is the processing line properly balanced for this product? 0 Yes 0 No