Question
Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components:
Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandecs production schedule calls for 5000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown.
Supports 44175583X Straps | 50001 b. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar. 312042 X C. How many hours of production time are used in each department? If required, round your answer to two decimal places. Hours of production Department time used Cutting Milling268.7: X hours Shaping 388.sX hours 330X hours d. How much should Frandec be willing to pay for an additional hour of time in the shaping department? If required, round your answer to two decimal places. o because there is surplus x of 284.4X hours. e. Another manufacturer has offered to sell frames to Frandec for $40 each. Could Frandec improve its position by pursuing this opportunity? Yes Why or why not? If required, round your answers to the nearest cent Because the current purchase price is 4X . The reduced cost is sx which means that the solution may be improved ir the cost is 32X or below. Supports 44175583X Straps | 50001 b. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar. 312042 X C. How many hours of production time are used in each department? If required, round your answer to two decimal places. Hours of production Department time used Cutting Milling268.7: X hours Shaping 388.sX hours 330X hours d. How much should Frandec be willing to pay for an additional hour of time in the shaping department? If required, round your answer to two decimal places. o because there is surplus x of 284.4X hours. e. Another manufacturer has offered to sell frames to Frandec for $40 each. Could Frandec improve its position by pursuing this opportunity? Yes Why or why not? If required, round your answers to the nearest cent Because the current purchase price is 4X . The reduced cost is sx which means that the solution may be improved ir the cost is 32X or belowStep by Step Solution
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