Question
PLZ ANSWER THIS ASAP Working Office Pty Ltd manufactures and sells two types of filing cabinets, Large and Small. The following unit information is given
PLZ ANSWER THIS ASAP Working Office Pty Ltd manufactures and sells two types of filing cabinets, Large and Small. The following unit information is given Please ensure that you leave yourself enough time to upload your file responses. It is recommended that you upload your file as you complete a file response question. The same machine is used to manufacture the large and small filing cabinets. Machine capacity is 120 hours per month. The large cabinet requires 15 minutes of machine time per unit while the small requires 20 minutes of machine time per unit a. Calculate the unit contribution margin for each unit (1 marks) b. What is the optimum production schedule to maximise profits? (2 marks)
Tom Morrow is responsible for purchasing the rolling components required in the filing cabinets. These rollers are becoming hard to source due to supply shortages. The company uses 9,730 boxes per year. The cost of each box of rollers is $25.00 and the inventory carrying cost is estimated to be 10% of the cost of each box. Tom has 80 boxes. d. What if the Economic Order Quantity (EOQ)? (4 marks) e. What is the total annual inventory cost? ( 4 marks)
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