Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please do PART 4 for this question ahitri, Waterways Continuing Problem (Thus is a continuation of the water was volen feven Chapteis trego) WCP.Phil Clark

image text in transcribedimage text in transcribedPlease do PART 4 for this question

ahitri, Waterways Continuing Problem (Thus is a continuation of the water was volen feven Chapteis trego) WCP.Phil Clark Jr., president of Waterwas, was very pleased with low dupling a CVT approxch to reporting operating income was helping angelen to make goud business decisicas with respect to planning production, and sales for the coming year. He has a nezing Llal knowing how Lisel sul variable dla belave mislil zbov Lalu Linen tulevinax int le produtivu departareul, Fulier, le is CUCURI : Wetwapioclueliwn livilily is using the full capsily richolom a le dues not know if Le coupes could generals ewoogle business wake aking amber Thil decides lusidomo will his brother Bell, vice-president of operations, and Rani Sunill, the plant nager, to see if bey would come with less." as he put it. Jurden. Leigh, Crowd recently presented them with a number of situations that required decisivos Lhat would impact operations in the plant. Phil thought that together the foot of the old find some efficient solutions Part 1 Wale was packs we uf ils produd into sols for do-il-ute (DIY) ilulivus Theuer cela se llx fue $159 dias valialue cusis of $79. bile vedere ells lor $29 willi Viale cost of $159. Fixed wwels ze assigual ala tale of $6 permaline : It takes 32 minutes of machining time to produce and package the smaller sct. The largest is more complicated and requires a minutes of production time. The machines operate for two shift af cight hours each day for 2 days per month. Maintenance and set-ups are handled outside of these Lindes. Analysis of the montent market trends ivala thot monthly demand for the smallest wwe not mengo mits, while Watermanys com ell as many of the larger ones as it can proces Instructions Given the information above, determine the best use of these bachines Part 2 As we lentul in caro. Waler aysunkels vipe wale won.cier und liell il-produces During 2029 Le Lyol 350,000 walls als selling pe ce v 8 per vuil Tvaible costs were $1.575.000, we fixed wel 5800,000 Waterways has determined the full cost to manufacture its timers is $0.9 per unit. Reemtly it was disconned that a competitor was selling this unit for 85 per unit. Ryan immediately suggested that waterways by the timer from the other applicr, bat.Jordan was not convinced. He motioned Rau liat $23,120 worth of liveci cusis wowi cot be eliminated by buying the unit lowever, lze also knew that, if Waterways boughal lle unit from the competitive, it would be up 120 1..ctive lours that could be used to produce ibe large DIY insation kits described in Paris Instructions a. Assuming Waterways requires ... Volimus, evaluate whether it bould continue to make the timer ur if it should purchase it from the outside supplier. Wbst is tbe maximum prio per unit Waterways sold be willing to pay ta percbet timer tom an out-ide supplier c. What non financial factors might be considered in making this derision? l'art 3 Waterways mass-prodoxes a special clip that is used to install the irrigation pipes. Because of a limited supply of the raw material used in the manufacturing proces, way for other companics can manufacture this clip. These units normally sell for $1.05 per unit. Waterways sells about 37, xic of the writs eat gear. temperare adding another shift to the prodation in which in un vould ineresse variable facturing costs by , por unit. Haarlton on each for 1.0i Tjust 3 abonatherible cast of the unit. In addition, ta cepat puto, A company in Ruitish Columihia that has been able to search metorial to wading the whome of units remanded by its customer has beciuse the units are going to one company, selling costs would he reduced by $0.15 per unit. All Alle WILPAILY las alyv neked via pilveler Il is willing to pro 83.20 per wil bul wally weeds 10.000 uuila Valeros CHLEIL Muse Chix outlee willwalking an exlashi Special packaging equired will cos. So 20 pl Currently, Waterways has cnogh raw materials to produk 50,1XK units. lustructions A. Ixtermine the consequences of Waterways Agreeing to provide the 15.000 units to the 1.C. company. Wouldtinis be a wise sperial order to my? b. Stould Waterways accept the special order cruce Alberta cumpa? c. What would be the mass of ring trialaria? d. What would be the opportunity cost of accepting the special order from the citizh Columbia company? The Alberta compu? Part 4 Waterways is considering replacing one of its two machines, an antiquated machine that has been slowing down production of its special clip because of breakdowns and added maintenance. Ryan Smith, the plant manager, estimates the machine has two years of use left. The undepreciated cost on the old machine is $30,000. He notes that the current machine is capable of producing an average of 1,200 units per month. The new model of the machine could produce twice as many units during the same time and variable costs would go down by $0.10 per unit. The replacement machine would cost $57,000 and has a two-year life expectancy. Costs are not expected to change over the next two years. Instructions Given the original information in Part 3, and assuming an unlimited supply of raw materials, determine if Waterways should replace the old machine. ahitri, Waterways Continuing Problem (Thus is a continuation of the water was volen feven Chapteis trego) WCP.Phil Clark Jr., president of Waterwas, was very pleased with low dupling a CVT approxch to reporting operating income was helping angelen to make goud business decisicas with respect to planning production, and sales for the coming year. He has a nezing Llal knowing how Lisel sul variable dla belave mislil zbov Lalu Linen tulevinax int le produtivu departareul, Fulier, le is CUCURI : Wetwapioclueliwn livilily is using the full capsily richolom a le dues not know if Le coupes could generals ewoogle business wake aking amber Thil decides lusidomo will his brother Bell, vice-president of operations, and Rani Sunill, the plant nager, to see if bey would come with less." as he put it. Jurden. Leigh, Crowd recently presented them with a number of situations that required decisivos Lhat would impact operations in the plant. Phil thought that together the foot of the old find some efficient solutions Part 1 Wale was packs we uf ils produd into sols for do-il-ute (DIY) ilulivus Theuer cela se llx fue $159 dias valialue cusis of $79. bile vedere ells lor $29 willi Viale cost of $159. Fixed wwels ze assigual ala tale of $6 permaline : It takes 32 minutes of machining time to produce and package the smaller sct. The largest is more complicated and requires a minutes of production time. The machines operate for two shift af cight hours each day for 2 days per month. Maintenance and set-ups are handled outside of these Lindes. Analysis of the montent market trends ivala thot monthly demand for the smallest wwe not mengo mits, while Watermanys com ell as many of the larger ones as it can proces Instructions Given the information above, determine the best use of these bachines Part 2 As we lentul in caro. Waler aysunkels vipe wale won.cier und liell il-produces During 2029 Le Lyol 350,000 walls als selling pe ce v 8 per vuil Tvaible costs were $1.575.000, we fixed wel 5800,000 Waterways has determined the full cost to manufacture its timers is $0.9 per unit. Reemtly it was disconned that a competitor was selling this unit for 85 per unit. Ryan immediately suggested that waterways by the timer from the other applicr, bat.Jordan was not convinced. He motioned Rau liat $23,120 worth of liveci cusis wowi cot be eliminated by buying the unit lowever, lze also knew that, if Waterways boughal lle unit from the competitive, it would be up 120 1..ctive lours that could be used to produce ibe large DIY insation kits described in Paris Instructions a. Assuming Waterways requires ... Volimus, evaluate whether it bould continue to make the timer ur if it should purchase it from the outside supplier. Wbst is tbe maximum prio per unit Waterways sold be willing to pay ta percbet timer tom an out-ide supplier c. What non financial factors might be considered in making this derision? l'art 3 Waterways mass-prodoxes a special clip that is used to install the irrigation pipes. Because of a limited supply of the raw material used in the manufacturing proces, way for other companics can manufacture this clip. These units normally sell for $1.05 per unit. Waterways sells about 37, xic of the writs eat gear. temperare adding another shift to the prodation in which in un vould ineresse variable facturing costs by , por unit. Haarlton on each for 1.0i Tjust 3 abonatherible cast of the unit. In addition, ta cepat puto, A company in Ruitish Columihia that has been able to search metorial to wading the whome of units remanded by its customer has beciuse the units are going to one company, selling costs would he reduced by $0.15 per unit. All Alle WILPAILY las alyv neked via pilveler Il is willing to pro 83.20 per wil bul wally weeds 10.000 uuila Valeros CHLEIL Muse Chix outlee willwalking an exlashi Special packaging equired will cos. So 20 pl Currently, Waterways has cnogh raw materials to produk 50,1XK units. lustructions A. Ixtermine the consequences of Waterways Agreeing to provide the 15.000 units to the 1.C. company. Wouldtinis be a wise sperial order to my? b. Stould Waterways accept the special order cruce Alberta cumpa? c. What would be the mass of ring trialaria? d. What would be the opportunity cost of accepting the special order from the citizh Columbia company? The Alberta compu? Part 4 Waterways is considering replacing one of its two machines, an antiquated machine that has been slowing down production of its special clip because of breakdowns and added maintenance. Ryan Smith, the plant manager, estimates the machine has two years of use left. The undepreciated cost on the old machine is $30,000. He notes that the current machine is capable of producing an average of 1,200 units per month. The new model of the machine could produce twice as many units during the same time and variable costs would go down by $0.10 per unit. The replacement machine would cost $57,000 and has a two-year life expectancy. Costs are not expected to change over the next two years. Instructions Given the original information in Part 3, and assuming an unlimited supply of raw materials, determine if Waterways should replace the old machine

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

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

5th Edition

0273651560, 978-0273651567

More Books

Students also viewed these Accounting questions

Question

Explain the seven dimensions of an organizations climate.

Answered: 1 week ago

Question

Describe the five types of change.

Answered: 1 week ago