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calculate the total annual cost included in the cutting activity cost pool assuming the cutting tool is purchased - /0.5 III Chad Davis, C&C Sportsvice

calculate the total annual cost included in the cutting activity cost pool assuming the cutting tool is purchased
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- /0.5 III Chad Davis, C&C Sportsvice president for operations, recently received a sales brochure for a new electric cutting tool. Based on the tool's specifications, Chad believes that C&C Sports could increase the batch size on jersey production to 50 jerseys, up from the current 35 jerseys. While the cutting tool would be used on pants and award jackets as well, other production factors prevent increasing the batch sizes for these products. The new tool would increase annual operating costs by 519.698. Before deciding whether to purchase the cutting tool, Chad wants to know how the new tool will affect the cost of producing the company's three products. Units per Budgeted production Cut per Batch Batch Pants 183,500 50 4 Jerseys 66,500 SO 5 Jackets 18,000 5 Chene Machine Corte Treble to Product Warehousing 5 12.4955 69.000 1. Der 27.000 70.000 $ 11.10 170,70 129.606 154.030 $5.875 61.6 15 5. Tetel 363,90 32.00 782400 230.000 209.226 230.000 5. Bant les 7 O Total 101 22 3.105 1708 1657 5 12726 110 3,00 08.000 SO5.000 010 65,00 5 1.12.10 Total TAL tot el 1 Waren 5770315 4 S 2 S Activity Role LA 5:33 polis 1110 bahas 15 hours LO Ortsbor

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