Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please do it by hand(show work) make it neat and readable please Question #6: The McLaren car factory is scaling up production so they can

image text in transcribedPlease do it by hand(show work)

make it neat and readable please

Question #6: The McLaren car factory is scaling up production so they can sell 2,000 MP4 model sports cars a year. They assembly team does only one shift a day for 12 hours, but for 280 days of the year (no weekends or holidays). During that time, they power (lights on, machine running, etc.) only during shift work at $0.10 per KWh. Total parts for each car costs $200,000, and the labor costs are $100,000 per laborer (yearly salary) for 150 assembly laborers. The factory floor costs $150/square meter and is 800 square meters for all 20 manufacturing stations. Each station draws an average of 5 kW per hour of operation. USE THE TABLE BELOW: What are the variable costs? (show below) What are the fixed costs? (show below) Which one is a primary cost driver? (5 pts) What price of vehicle would make the factory break even (if all other costs were accounted for in other stockholder share methods)? (10 pts) Variable Costs Cost per unit Total Cost Fixed Costs Price of the car Question #6: The McLaren car factory is scaling up production so they can sell 2,000 MP4 model sports cars a year. They assembly team does only one shift a day for 12 hours, but for 280 days of the year (no weekends or holidays). During that time, they power (lights on, machine running, etc.) only during shift work at $0.10 per KWh. Total parts for each car costs $200,000, and the labor costs are $100,000 per laborer (yearly salary) for 150 assembly laborers. The factory floor costs $150/square meter and is 800 square meters for all 20 manufacturing stations. Each station draws an average of 5 kW per hour of operation. USE THE TABLE BELOW: What are the variable costs? (show below) What are the fixed costs? (show below) Which one is a primary cost driver? (5 pts) What price of vehicle would make the factory break even (if all other costs were accounted for in other stockholder share methods)? (10 pts) Variable Costs Cost per unit Total Cost Fixed Costs Price of the car

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Liquidity Risk Management In Banks Economic And Regulatory Issues

Authors: Roberto Ruozi, Pierpaolo Ferrari

1st Edition

3642295800, 978-3642295805

More Books

Students also viewed these Finance questions