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The following data are average times per order over the last month for Garance Corp. minutes Move time Inspection time Queue time Wait time to
The following data are average times per order over the last month for Garance Corp. minutes Move time Inspection time Queue time Wait time to start production Process time 16 3 2 5 Q: What is Manufacturing Cycle Efficiency (MCE)? Use two decimal places in the answer (for example, if the answer is 72%, key in "0.72"). A: Wisteria Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Good $17 $8 2 Product Better $19 $10 3 Best $26 $12 4 The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $41,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability Suppose the company can rent a machine that will provide an additional 1,300 machine-hours per month. Q: What is the maximum monthly rent the company should be willing to pay for this machine (assuming they've made optimal use of their own machine)? A:$ Eflur, Inc. has 2 branches--Northern and Southern branches. The company's fixed costs that are traceable to the Northern branch is $175,000, while fixed costs that are traceable to the Southern branch is $180,000. The Northern branch is further divided into two segments based on the customer types: the local and the nonlocal. Traceable fixed cost for the local is $68,250, and traceable fixed cost for the nonlocal is $23,900. Q: How much is the common fixed costs of the two order types for the Northern branch? A:$ Qoah Company is considering adding a new type of product, Product N, to its product lines. Below are revenue and variable-cost estimates prepared to help analyze this possible product introduction: 12,500 units $50 Annual Sales Selling price per unit Unit variable costs: Production Selling $20 $18 If Product N is introduced, the product line will include $110,000 in annual fixed cost, composed of $27,000 in newly incurred fixed costs in production, $33,000 in newly incurred fixed costs in sales; and $50,000 in allocated corporate- level costs (reducing allocation to other product lines by $50,000). Also, if Product N is introduced, it will likely boost sales of Qoah Company's current products, increasing the total contribution margin from current products by $26,000. Q.: What is the change in the company's net operating income if the new product is introduced? (Key in a positive number if it is an increase, a negative number if it is a decrease.) A: $
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