1. Consideraproductwiththefollowingbillofmaterials.Thenumberinparenthesesnexttoeachitemdenotesthenumberofthatitemrequiredforaunitoftheparentitem(theoneaboveitintheBOMtree).Availabledenotestheamountofon-handinventoryinperiod0.Pleaseseethetablebelowforadescriptionoftheorderingcharacteristicsforthisproduct

   Item	Leadtime	Available	ScheduleReceipts	OrderQuantity
   Skateboard	1	10	None	LotforLot
   Board	2	20	20inWeek3	100
   Roller-set	1	50	90inWeek2	LotforLot
   Wheel	3	30	40inWeek4	200
   Axle	2	20	None	150
   Nut	1	50	None	500

   Week:	1	2	3	4	5	6	7	8	9	10
   DemandforSkateboards						50				80

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Question2:

The Chrysler car company is divided into several divisions as it pertains to the manufacturing of their cars and trucks. One division in particular the transmission division is having a hard time figuring out costs associated with the manufacturer of the transmission systems for the companiessmall, mid and large sized vehicles. It therefore, makes transmissions for these different sized vehicles in dedicated plants. New entrants into the car market have all be able to prove that transmission systems are much cheaper to make for all sized vehicles under one roof. Currently the Chrysler Corporation operates Indiana Transmission Plant I inKokomo. Made at this facility is the transmission for the Jeep Cherokee, Jeep Grand Cherokee, DodgeDurango, Ram Trucks,CumminsDiesel and Heavy Duty (Large sized vehicles). There has been a recession in the economy and the demand for large has fallen significantly. The manager of the facility wants to investigate the feasibility of making the transmission for the Chrysler Town and Country, Chrysler 300, Chrysler 200, Chrysler 200 Convertible, Dodge Charger, Dodge Challenger, Dodge Journey and Dodge dart (small and mid-sized vehicles). This addition would give the plant the capability of making transmission systems forsmall, mid and largeall in the same facility. See the tables below:

Table 1.

Product	Raw Material Cost ($/Unit)	Price ($/Unit)	Minimum Demand (Units per Month)	Maximum Demand (Units per Month)
Small	$1,600.00	$2,000.00	3000	50000
Mid	$1,700.00	$3,000.00	2000	60000
Large	$2,500.00	$4,000.00	2000	10000

Table 2.

Product	Motor Assembly (Minimum Time Per Unit in minutes)	Final Assembly (Minimum Time Per Unit in minutes)	Test (Minimum Time Per Unit in minutes)	Minimum Amount of time for assembly (in minutes)
Small Transmission	3	2	1	3
Mid Transmission	5	4	4	5
Large Transmission	5	6	5	7

Table 3.

Hours Per Month in one 8 hour shift for 250 Workers	120000	hrs
Hourly Labor Costs per worker	$7.00
Overhead Costs	$20,000,000.00
Number of Workers	250	Workers

1. The new production schedule, due to the recession, calls for50000 small car, 40000 mid-size car and 5000 large truck transmissionsto be made. (See first worksheet in excel to provide all your answers to this question).
   1. Determine the amount of time it takes to make each product in the production plan?
   2. Determine the material costs for this production plan?
   3. Determine the Labor costs for this production plan?
   4. Determine the Overhead costs for this production plan?
   5. Determine the revenue that is generated from this production plan?
   6. Determine the profit per product with this production plan?
   7. Determine the profit per unit based on the traditional cost allocation method?
   8. Determine the Total Profit of the Company based on this production plan?