Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

table [ [ table [ [ ( 4 ) ] , [ 1 . a . Average order ] , [ manufacturing lead

\table[[\table[[(4)],[1. a. Average order],[manufacturing lead],[time,140 hours.]],\table[[19-33]],\table[[Manufacturing lead times, relevant revenues, and relevant costs. The Brandt],[Corporation makes wire harnesses for the aircraft industry. Brandt is uncertain about when],[and how many customer orders will be received. The company makes harnesses only after],[receiving firm orders from its customers. Brandt has recently purchased a new machine to],[make two types of wire harnesses, one for Boeing airplanes (B7) and the other for Airbus],[Industries airplanes (A3). The annual capacity of the new machine is 6,000 hours. The fol-],[lowing information is available for next year:]]],[,\table[[Annual],[Average],[Number],[of],[Orders]],\table[[Manufacturing],[Time],[Required]],\table[[Selling Price per Order],[If Average Manufacturing Lead Time],[per Order Is]],\table[[Variable],[Cost],[per],[Order]],\table[[Inventory],[Carrying],[Cost],[per Order],[per Hour]]],[Customer,Less than 200 Hours,More than 200 Hours],[B7,125,40 hours,$15,000,$14,400,$10,000,$0.50],[A3,10,50 hours,13,500,12,960,9,000,0.45],[,,\table[[REQUIRED],[1. Calculate the average manufacturing lead times per order (a) if Brandt manufactures only B7],[and (b) if Brandt manufactures both B7 and A3.],[2. Even though A3 has a positive contribution margin, Brandt's managers are evaluating],[whether Brandt should (a) make and sell only B7 or (b) make and sell both B7 and A3.],[Which alternative will maximize Brandt's operating income? Show your calculations.],[3. What other factors should Brandt consider in choosing between the alternatives in],[requirement 2?]]]] please show by using excel. thank you
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Fundamental Accounting Principles Volume 2

Authors: Kermit Larson, Heidi Dieckmann

15th Canadian Edition

1259087360, 9781259087363

More Books

Students also viewed these Accounting questions