Question
On page 87, Rogo's management team decides to activate a, ...one-shift operation of the NCX-10 supplemental trio of obsolete machines that Bob Donovan found on
On page 87, Rogo's management team decides to activate a, "...one-shift operation of the NCX-10 supplemental trio of obsolete machines" that Bob Donovan found on the prior page (that is, the Zmegma, the Screwmeister, and another machine).
The Bearington Plant runs three 8-hour shifts each day, but let's assume that, working sequentially, the "supplemental trio" can produce 6 parts per hour during the first shift each day. The plant can sell all completed orders for $1,000 per unit and it costs $320 per hour to staff and run each one of the three obsolete machines.
What is the total contribution margin the plant can make each week by activating this trio of obsolete machines? That is, the total sales price of completed units less the total cost of staffing the machines for eight hours a day for seven days each week.
Please enter your answer without a "$". For example, if you calculate $120,000 then just enter "120000" in the box below without a comma.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the total contribution margin we need to follow these steps Step 1 Calculate the Daily ...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