Question 28: (Maximum Grade: 28 points - Suggested Time: 28 minutes) Graeme's Wood products sells birdhouses. Graeme purchases the kits needed to build the birdhouses from an outside supplier and stores them in inventory. Each kit contains all the parts needed to assemble a birdhouse. When a customer order is received a picking employee goes to the inventory area and fills a bin with enough kits to fill the order. The bin is then passed to the assembly area where an assembly employee opens the kits and assembles all the birdhouses for the order. When the assembly process is complete, the birdhouses are passed along to the shipping area where a shipping employee wraps and ships each birdhouse. Picking employees work 39 hours per week and are paid a salary of $1,404 per week. Assembly employees work 40 hours a week and are paid a salary of $960 per week. Shipping employees work 37 hours per week and are paid a salary of $1,110 per week. The cost of manufacturing each birdhouse kit is $35 and the assembled birdhouses are sold for $50.00 each. Activity times are as follows: Required Complete the table on the following page to show the profitability of a customer who places an order for 20 birdhouses. In column 2 you should write the formula used to compute the required value in column 3 . The formula and calculation for computing the customer total gross margin for the order is shown as a sample for what you should provide. Confine your response to the space provided. Question 28: (Maximum Grade: 28 points - Suggested Time: 28 minutes) Graeme's Wood products sells birdhouses. Graeme purchases the kits needed to build the birdhouses from an outside supplier and stores them in inventory. Each kit contains all the parts needed to assemble a birdhouse. When a customer order is received a picking employee goes to the inventory area and fills a bin with enough kits to fill the order. The bin is then passed to the assembly area where an assembly employee opens the kits and assembles all the birdhouses for the order. When the assembly process is complete, the birdhouses are passed along to the shipping area where a shipping employee wraps and ships each birdhouse. Picking employees work 39 hours per week and are paid a salary of $1,404 per week. Assembly employees work 40 hours a week and are paid a salary of $960 per week. Shipping employees work 37 hours per week and are paid a salary of $1,110 per week. The cost of manufacturing each birdhouse kit is $35 and the assembled birdhouses are sold for $50.00 each. Activity times are as follows: Required Complete the table on the following page to show the profitability of a customer who places an order for 20 birdhouses. In column 2 you should write the formula used to compute the required value in column 3 . The formula and calculation for computing the customer total gross margin for the order is shown as a sample for what you should provide. Confine your response to the space provided
