Case Study Perences Khadi Hata Mailings Review View Help Search - A - A - ES AaBbCel AaBbcc AaBbcc AaBb AaBbcc Headings 1 Normal No Spac. Heading Heading 2 Paragraph Styles AL AIN MANUFACTURING COMPANY - AAC For 6 years, Al Ain Company (AAC) only produced one product the basic electric kettle for boiling water. The kettle was the first on the market to have a reliability system enabling it to turn itself off at the exact moment when the water bad boiled. It is also light enough to be carried easily. looked modem and was quite robust From a manufacturing point of view, the kettle consisted of *pressed stainless steel body and lid, which AAC bought complete "heat-insulated handle of wire and plastic, which also formed the cover of the switching mechanism above the hole for electric plug, which AAC bought complete *heating element, which AAC bought semi-finished thermostat and switching mechanism, which AAC pre-assembled from standard electrical components The thermostat and switching mechanism were both technically, and in market terms, the heart of the product and were protected by a large number of patents. This was the main reason why AAC preferred to manufacturing this part completely whereas it bought all other parts in more or less finished form. Final assembly, test (mainly electrical insulation efficiency) and packaging was also carried out by AAC Feus BI 0 F4 DK F7 000 000 F5 FB F9 F10 F11 Find Case Study Khadija Hasan Al M Layout References Mailings Review View Help Search A AA EEEE AaBbCalabaabbcc AaBbc AaBbcc A2-A E. Heading Normal No Space Heading Heading 2 Ser- Paragraph Shles the product and were protected by a large number of patents. This was the main reason why AAC preferred to manufacturing this part completely whereas it bought all other parts in more or less finished form. Final assembly, test (mainly electrical insulation efficiency) and packaging was also carried out by AAC Immediately after it was founded, AAC greatly prospered. The automatic kettle was not only useful in a coffee tea-drinking country where households needed a convenient supply of boiling water in several different rooms of the house. It also seemed to appeal to the safety needs of housewives who might otherwise have been afraid of an attended kettle boiling dry, melting and setting fire to the house The AAC kettle however confirmed its safety to the housewives every time it switched off in normal operation when the water is boiled It also profited from the fact that the basic idea behind the thermostat vlas so beautiful simple that no effective challenge was ever mounted to its main patents RE F4 F6 F7 FB F9 F10 F11 090 10D 112 %. & * 4 5 6 7 oc Case Study Khardija HAI View Help Search References Mailings Review -- E- EE e-A- 5 Paragraph * 2 AaBbCel AabbCct AaBbcc AaBbc AaBbcc Headings T Normal No Spac. Heading 1 Heading 2 5 Styles Et Last year AAC manufactured and sold 143,000 (quantity) kettles for 39 Dh each, but each kettle only costs 20.57 Dh. Look at the figures! The finished components for each kettle cost just over 10:50 Dh, AAC had to spend 100.000 Dhon standard electrical parts for the thermostats, wages costs were 1.128,000 D (including health insurance), the plant rent was 100.000 DR heat and lighting in that draughty place were 17.000 Dh and all other real espeses were mother 95.000 DI At the end of the year AAC had no inventory left in the warehouse; neither finished products nor parts, nor raw materials. The president of AAC (who also the managing director and a partner) looked at those numbers and said "let us party! We have made mois. Dhe kettle The financial officer (who is the other partner) said: "don't forget all those people in administration and sales. These 5.000 DN (including advertising) What about those machines and equipment you had to buy. We have used the machined while bellion Dit so much that we would not even get scrap value from them. They are worn out and worth nothing Instructions: On the basis of the above information: DF i + F5 F6 0 F8 F9 F11 DOG F12 $ 7. & 4 5 6 7 * 8 { 9 o 0 7 V 9 De Case Study Khadi Hasan Allar Layout References Maidings Review View Help Search A A- A - AaBbCclabbet AaBbc AaBbc AaBbc Heading 5 1 Normal No Spac. Heading Heading 2 Find We Reple 5 Paragraph Styles Editing The financial officer (who is the other partner) said: "don't forget all those people in administration and sales. They cos1.000 DN (including advertising). What about those machines and equipment you had to buy. We have used the machodiment which controllo Duhans, so much that we would not even get scrap value from them. They are worn out and worth nothing Instructions: On the basis of the above information: 1. How much did each kettle cost to manufacture and what was the gross margia per kettle? 2-What was the total cost of each kettle, the average net profit per kettle, and net profit for the whole company for the year. 3.Can we, in real life, use this sort of product cost calculation in most normal manufacturing companies? If not, why? RI 3 F 0 BA F7 FB FO F10 F11 Ben 090 12 $ %. ox 3 4 ar 6 7 8 { 9 0 7 Y Case Study Perences Khadi Hata Mailings Review View Help Search - A - A - ES AaBbCel AaBbcc AaBbcc AaBb AaBbcc Headings 1 Normal No Spac. Heading Heading 2 Paragraph Styles AL AIN MANUFACTURING COMPANY - AAC For 6 years, Al Ain Company (AAC) only produced one product the basic electric kettle for boiling water. The kettle was the first on the market to have a reliability system enabling it to turn itself off at the exact moment when the water bad boiled. It is also light enough to be carried easily. looked modem and was quite robust From a manufacturing point of view, the kettle consisted of *pressed stainless steel body and lid, which AAC bought complete "heat-insulated handle of wire and plastic, which also formed the cover of the switching mechanism above the hole for electric plug, which AAC bought complete *heating element, which AAC bought semi-finished thermostat and switching mechanism, which AAC pre-assembled from standard electrical components The thermostat and switching mechanism were both technically, and in market terms, the heart of the product and were protected by a large number of patents. This was the main reason why AAC preferred to manufacturing this part completely whereas it bought all other parts in more or less finished form. Final assembly, test (mainly electrical insulation efficiency) and packaging was also carried out by AAC Feus BI 0 F4 DK F7 000 000 F5 FB F9 F10 F11 Find Case Study Khadija Hasan Al M Layout References Mailings Review View Help Search A AA EEEE AaBbCalabaabbcc AaBbc AaBbcc A2-A E. Heading Normal No Space Heading Heading 2 Ser- Paragraph Shles the product and were protected by a large number of patents. This was the main reason why AAC preferred to manufacturing this part completely whereas it bought all other parts in more or less finished form. Final assembly, test (mainly electrical insulation efficiency) and packaging was also carried out by AAC Immediately after it was founded, AAC greatly prospered. The automatic kettle was not only useful in a coffee tea-drinking country where households needed a convenient supply of boiling water in several different rooms of the house. It also seemed to appeal to the safety needs of housewives who might otherwise have been afraid of an attended kettle boiling dry, melting and setting fire to the house The AAC kettle however confirmed its safety to the housewives every time it switched off in normal operation when the water is boiled It also profited from the fact that the basic idea behind the thermostat vlas so beautiful simple that no effective challenge was ever mounted to its main patents RE F4 F6 F7 FB F9 F10 F11 090 10D 112 %. & * 4 5 6 7 oc Case Study Khardija HAI View Help Search References Mailings Review -- E- EE e-A- 5 Paragraph * 2 AaBbCel AabbCct AaBbcc AaBbc AaBbcc Headings T Normal No Spac. Heading 1 Heading 2 5 Styles Et Last year AAC manufactured and sold 143,000 (quantity) kettles for 39 Dh each, but each kettle only costs 20.57 Dh. Look at the figures! The finished components for each kettle cost just over 10:50 Dh, AAC had to spend 100.000 Dhon standard electrical parts for the thermostats, wages costs were 1.128,000 D (including health insurance), the plant rent was 100.000 DR heat and lighting in that draughty place were 17.000 Dh and all other real espeses were mother 95.000 DI At the end of the year AAC had no inventory left in the warehouse; neither finished products nor parts, nor raw materials. The president of AAC (who also the managing director and a partner) looked at those numbers and said "let us party! We have made mois. Dhe kettle The financial officer (who is the other partner) said: "don't forget all those people in administration and sales. These 5.000 DN (including advertising) What about those machines and equipment you had to buy. We have used the machined while bellion Dit so much that we would not even get scrap value from them. They are worn out and worth nothing Instructions: On the basis of the above information: DF i + F5 F6 0 F8 F9 F11 DOG F12 $ 7. & 4 5 6 7 * 8 { 9 o 0 7 V 9 De Case Study Khadi Hasan Allar Layout References Maidings Review View Help Search A A- A - AaBbCclabbet AaBbc AaBbc AaBbc Heading 5 1 Normal No Spac. Heading Heading 2 Find We Reple 5 Paragraph Styles Editing The financial officer (who is the other partner) said: "don't forget all those people in administration and sales. They cos1.000 DN (including advertising). What about those machines and equipment you had to buy. We have used the machodiment which controllo Duhans, so much that we would not even get scrap value from them. They are worn out and worth nothing Instructions: On the basis of the above information: 1. How much did each kettle cost to manufacture and what was the gross margia per kettle? 2-What was the total cost of each kettle, the average net profit per kettle, and net profit for the whole company for the year. 3.Can we, in real life, use this sort of product cost calculation in most normal manufacturing companies? If not, why? RI 3 F 0 BA F7 FB FO F10 F11 Ben 090 12 $ %. ox 3 4 ar 6 7 8 { 9 0 7 Y