Company Simple Laminates brothers Inc. is producing impregnated papers for the furniture industry. Following information of the parts of the product. Material base Product Plastic Melamine Phenol Pallets Paper Melamine resin Phenolic resin Packaging cost per 4500 Melamine Phenol Impregnated paper som product product units cost per ke cost per sqm 70gr 0,210 ,21 70gr 12,25 0,1575 65gr 2,15 0,13975 50 900 ,02 0,018 Direct Material 0,3875 0,36775 In order to produce the products, the company has 6 direct employees per shift preparing impregnated papers at an annual cost of 30.000 per employee. The employees have a working schedule of 1750 hours per year. The production site works with a 3-shift schedule, 24 hours per day. To coordinate the production we have a foreman, with a total annual cost of 50.000 per year. If there is a need for more direct labor the company has the chance to use overtime with the existing employees at actual cost per hour with an increase of 50%. Prepare a new production schedule maximizing the result, assigning the overtime if needed to the last quarter and prepare a quarterly budget 2020. 4. After the changes of product mix you decide you will give the same sales price to the market for the two products you are selling. Find which would be the sales price for break even for the year 2020. Find also which would be the price for an operating income profitability of 10% over sales. Which is now the contribution margin for melamine products? Which is contribution margin for Phenol products? Company Simple Laminates brothers Inc. is producing impregnated papers for the furniture industry. Following information of the parts of the product. Material base Product Plastic Melamine Phenol Pallets Paper Melamine resin Phenolic resin Packaging cost per 4500 Melamine Phenol Impregnated paper som product product units cost per ke cost per sqm 70gr 0,210 ,21 70gr 12,25 0,1575 65gr 2,15 0,13975 50 900 ,02 0,018 Direct Material 0,3875 0,36775 In order to produce the products, the company has 6 direct employees per shift preparing impregnated papers at an annual cost of 30.000 per employee. The employees have a working schedule of 1750 hours per year. The production site works with a 3-shift schedule, 24 hours per day. To coordinate the production we have a foreman, with a total annual cost of 50.000 per year. If there is a need for more direct labor the company has the chance to use overtime with the existing employees at actual cost per hour with an increase of 50%. Prepare a new production schedule maximizing the result, assigning the overtime if needed to the last quarter and prepare a quarterly budget 2020. 4. After the changes of product mix you decide you will give the same sales price to the market for the two products you are selling. Find which would be the sales price for break even for the year 2020. Find also which would be the price for an operating income profitability of 10% over sales. Which is now the contribution margin for melamine products? Which is contribution margin for Phenol products
