The generally accepted accounting principles of the United States
Complete Question:
You are considering the purchase of a new machine to help produce a new product line being introduced. The machine is expected to have a setup time of 10 minutes per batch and a processing time of 2 minutes per part. You plan to have batch sizes of 50 parts. The plant operates 8 hours per day.
What is the capacity of the machine in batches per day?
Answer:
The capacity of the machine in batches = 4 batches per day.
Explanation:
a) Data and Calculations:
Set up time per batch = 10 minutes
Processing time per part = 2 minutes
Batch sizes = 50 parts
Plant operation = 8 hours per day
b) Capacity in batches per day:
Total batch time = 10 + 50 * 2 = 110 minutes
Total minutes of operation per day = 8 * 60 = 480 minutes
Capacity in batches = 480/110 = 4.36 or approximately 4 batches
c) Each batch produces 50 parts with each part taking some 2 minutes and an additional batch setup time of 10 minutes, giving a total of 110 minutes per batch. Since there are some 480 (8 * 60) minutes available per day, it means that the entity can only run about 4 batches (480/110) per day. These 4 batches will consume a total of 440 minutes (110 x 4), leaving some 40 minutes as unutilized time.
Answer:
$289000
Explanation:
Effective Gross Income (EGI): Effective Gross Income is calculated by deducting the Vacancy and collection (V&C) loss from Gross Potential Income (GPI).
First year gross potential income (PGI) is $340,000
Vacancy and collection (V&C) loss is 15% of gross potential income
Therefore, (V&C) allowance = [$340,000 15%]
= $51,000
Calculate Effective Gross Income (EGI) for the first year of operations:
Item
Amount
Potential gross income (PGI)
$340,000
Less: V&C allowance (at 15% of PGI)
($51,000)
Effective Gross Income ( EGI )
$289,000
Hence the EGI is $289,000
Answer:B. So that the growth can be carefully monitored and managed
Explanation: Management is an act of planing,coordinating and the executing responsibilities in order to improve efficiency.
When a company grows the number of managers are expected to increase so that the activities of the organization is effectively coordinated,growth can be properly and efficiently monitored and managed.
If growth is not efficiently monitored and managed it will hinder the overall performance of the organization.
Ans: These barriers include: economies of scale that lead to natural monopoly; control of a physical resource; legal restrictions on competition; patent, trademark and copyright protection; and practices to intimidate the competition like predatory pricing.
