Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need help with the rest of the requirements please Fast Print manufactures and sells 23,000 high-technology printing presses each year. The varlable and fixed
i need help with the rest of the requirements please
Fast Print manufactures and sells 23,000 high-technology printing presses each year. The varlable and fixed costs of rework and repair aro as follows: (Click the icon to viow the cost data.) Fast Print's current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key component in each press. (Click the icon to view the data on the new component.) Resd the requirements. Requirement 1. Should Fast Print change to the new component? Show your calculations. Begin by selecting the formula and calculating the relevant cost amount. Select the formula you will use to calculate the relevant benefits of the quality items. the icon to view the cost data.) current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key ick the icon to view the data on the new component.) e reguirements. Data table ement 1. Should Fas y selecting the formu W component cost 60 Print manufactures and sells 23,000 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follow (Click the icon to view the cost data.) Print's current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key compo (Click the icon to view the data on the new component.) d the requirements. More info The new component will cost $60 more than the old one. In the next year, however, Fast Print expects that with the new component it will (1) save 14,100 hours of rework, (2) save 900 hours of customer support, (3) move 225 fewer loads, (4) save 5,200 hours of warranty repairs, and (5) sell an additional 150 printing presses, for a total contribution margin of $1,800,000. Fast Print believes that even as it improves quality, it will not be able to save any of the fixed costs of rework or repair. Fast Print uses a 1-year time horizon for this decision because it plans to introduce a new press at the end of the year. in warranty rep he formula you will use to calculate the total relevent benefits, and then calculate the amount. Requirements 1. Should Fast Print change to the new component? Show your calculations. 2. Suppose the estimate of 150 additional printing presses sold is uncertain. What is the minimum number of additional printing presses that Fast Print needs to sell to justify adopting the new component? 3. What other factors should managers at Fast Print consider when making their decision about changing to a new component? you will use to calculate the total relevent benefits, and then calculate the amount. Fast Print manufactures and sells 23,000 high-technology printing presses each year. The varlable and fixed costs of rework and repair aro as follows: (Click the icon to viow the cost data.) Fast Print's current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key component in each press. (Click the icon to view the data on the new component.) Resd the requirements. Requirement 1. Should Fast Print change to the new component? Show your calculations. Begin by selecting the formula and calculating the relevant cost amount. Select the formula you will use to calculate the relevant benefits of the quality items. the icon to view the cost data.) current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key ick the icon to view the data on the new component.) e reguirements. Data table ement 1. Should Fas y selecting the formu W component cost 60 Print manufactures and sells 23,000 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follow (Click the icon to view the cost data.) Print's current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key compo (Click the icon to view the data on the new component.) d the requirements. More info The new component will cost $60 more than the old one. In the next year, however, Fast Print expects that with the new component it will (1) save 14,100 hours of rework, (2) save 900 hours of customer support, (3) move 225 fewer loads, (4) save 5,200 hours of warranty repairs, and (5) sell an additional 150 printing presses, for a total contribution margin of $1,800,000. Fast Print believes that even as it improves quality, it will not be able to save any of the fixed costs of rework or repair. Fast Print uses a 1-year time horizon for this decision because it plans to introduce a new press at the end of the year. in warranty rep he formula you will use to calculate the total relevent benefits, and then calculate the amount. Requirements 1. Should Fast Print change to the new component? Show your calculations. 2. Suppose the estimate of 150 additional printing presses sold is uncertain. What is the minimum number of additional printing presses that Fast Print needs to sell to justify adopting the new component? 3. What other factors should managers at Fast Print consider when making their decision about changing to a new component? you will use to calculate the total relevent benefits, and then calculate the amount Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started