Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The VapoiX manufachures an entry-bovel hovertoosid. HOV X Pursuing a cost teadershig strategy, the compary has iried to improve qualify and redice costs. As a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The VapoiX manufachures an entry-bovel hovertoosid. HOV X Pursuing a cost teadershig strategy, the compary has iried to improve qualify and redice costs. As a resiat of the actions taken over the Information about the curront poriod (2020) and last period (2019) follows: last year, quality has signiticantly impeoved in 2020 while rewokk and unit costs of the HOV. X have (Click the icon to vow the information) decreased ViapoeX has reduced manufacturing capacity because capacty is no longer needed to (Cick the icon to vew addionst information) suppont rer Resd the tequitements Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused solling and customer servce capacty at tho beginning of 2020 basod on actual production and actual nur of custamers served in 2020 Requirement 2 Suppose Vapox can add of reduce its selting and customer-service capacily in inciements of 10 customers. What is Eha maxam amount of costs etat Vapor could save in 2020 try downs. soling and customotisorice capacity? The miximum arnount of costs the company could save in 2020 by downsing seling and customer-service capacily is Requirement 3. Vopor X, i fact, does not elminate any of is unused satling and customer service capacily. Why migm VaporX not downsize? Select two slalements that would explan why VaporX might not downstro. Not roducing significart capacty by lyying off employees boosts employee morabe and keops omployoos moro motivaled and producive. VaporX may choose not to downszze because it wants to appear as though it has the capocity to peoduce many more anits lat potental customers. Vapon may dioose not to downsise becsuse conpetitors will view it as a sign of weakness if they downszo inmsediately nctease capacty. Data table More info Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that VaporX can support, not the actual number of customers it serves. Vapor X has 75 customers in 2019 and 80 customers in 2020. Requirements 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2020 based on actual production and actual number of customers served in 2020. 2. Suppose Vapor X can add or reduce its selling and customer-service capacity in increments of 10 customers. What is the maximum amount of costs that Vapor X could save in 2020 by downsizing selling and customer-service capacity? 3. VaporX, in fact, does not eliminate any of its unused selling and customer-service capacity. Why might VaporX not downsize?. The VapoiX manufachures an entry-bovel hovertoosid. HOV X Pursuing a cost teadershig strategy, the compary has iried to improve qualify and redice costs. As a resiat of the actions taken over the Information about the curront poriod (2020) and last period (2019) follows: last year, quality has signiticantly impeoved in 2020 while rewokk and unit costs of the HOV. X have (Click the icon to vow the information) decreased ViapoeX has reduced manufacturing capacity because capacty is no longer needed to (Cick the icon to vew addionst information) suppont rer Resd the tequitements Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused solling and customer servce capacty at tho beginning of 2020 basod on actual production and actual nur of custamers served in 2020 Requirement 2 Suppose Vapox can add of reduce its selting and customer-service capacily in inciements of 10 customers. What is Eha maxam amount of costs etat Vapor could save in 2020 try downs. soling and customotisorice capacity? The miximum arnount of costs the company could save in 2020 by downsing seling and customer-service capacily is Requirement 3. Vopor X, i fact, does not elminate any of is unused satling and customer service capacily. Why migm VaporX not downsize? Select two slalements that would explan why VaporX might not downstro. Not roducing significart capacty by lyying off employees boosts employee morabe and keops omployoos moro motivaled and producive. VaporX may choose not to downszze because it wants to appear as though it has the capocity to peoduce many more anits lat potental customers. Vapon may dioose not to downsise becsuse conpetitors will view it as a sign of weakness if they downszo inmsediately nctease capacty. Data table More info Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that VaporX can support, not the actual number of customers it serves. Vapor X has 75 customers in 2019 and 80 customers in 2020. Requirements 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2020 based on actual production and actual number of customers served in 2020. 2. Suppose Vapor X can add or reduce its selling and customer-service capacity in increments of 10 customers. What is the maximum amount of costs that Vapor X could save in 2020 by downsizing selling and customer-service capacity? 3. VaporX, in fact, does not eliminate any of its unused selling and customer-service capacity. Why might VaporX not downsize

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

Management Audit A Complete Guide

Authors: Gerardus Blokdyk

2020 Edition

0655905413, 978-0655905417

More Books

Students also viewed these Accounting questions