Question: 1
A company uses a planning system that focuses first on the amount and timing of finished goods demanded and then determines the derived demand for raw materials,components,and subassemblies at each of the prior stages of production.this system is?
Question: 2
The U.S. Postal Service is looking for a new machine to help sort the mail. Two companies have submitted bids to Cliff Kraven, the postal inspector responsible for choosing a machine. A cash flow analysis of the two machines indicates the following:
It the cost of capital for the Postal Service is 8%. which of the two mail sorters should Cliff choose and why?
Question: 3
Madengrad Company manufactures a single electronic product called Precisionmix. This unit is a batch-density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. Precisionmix sells for $900 per unit. The following variable costs are incurred to produce each Precisionmix device:
Madengrad's income tax rate is 40%, and annual fixed costs are $6,600,000. Except for an operating loss incurred in the year of incorporation, the firm has been profitable over the last 5 years.Assume a 10% increase in annual fixed costs, a 20% unit cost increase for direct labor1 and a reduction in unit material costs of 25%, with no change in selling price. Madengrad Company's breakeven point would increase (decrease) (rounded to the nearest whole unit) by
Question: 4
Stewart Industries has been producing two bearings, components B12 and B18, for use in production.
Stewart's annual requirement for these components is 8,000 units of B12 and 11000 units of B18. Recently, Stewart's management decided to devote additional machine time to other product lines resulting in only 41,000 machine hours per year that can be dedicated to the production of the bearings. An outside company has offered to sell Stewart the annual supply of the bearings at prices of $11.25 for B12 and $13.50 for B18. Stewart wants to schedule the otherwise idle 411000 machine hours to produce bearings so that the company can minimize its costs (maximize its net benefits). Note 1: Variable manufacturing overhead is applied on the basis of direct labor hours. Note 2: Fixed manufacturing overhead is applied on the basis of machine hours. Srewart will maximize its net benefits by
Question: 5
Randall Corporation is a table manufacturing company that has the following cost structure for producing table tops.
Recently, Randall Corporation received an offer from Blurr Corporation to supply the table tops to Randall. Randall is considering buying the table tops from Blurr instead of manufacturing them internally. Which one of the following statements is correct?
