Answer:
Liu Inc.
In deciding whether to make or buy the component, the cost of making the component that should be compared to the price of buying it is:
= $21.71.
Explanation:
a) Data and Calculations:
Make Buy
Units of components required 14,000 14,000
Direct materials $9.60
Direct labor 6.70
Variable manufacturing overhead 1.55
Fixed manufacturing overhead 3.40
Unit product cost $21.25
Unavoidable fixed overhead (2.04) ($3.40 * 1 - 0.4)
Opportunity cost per unit 2.50 ($5.00/2)
Total avoidable cost per unit $21.71
Direct materials $9.60
Direct labor 6.70
Variable manufacturing overhead 1.55
Avoidable Fixed manufacturing overhead 1.36
Unit product cost $19.21
Opportunity cost per unit 2.50 ($5.00/2)
Total avoidable cost per unit $21.71
Answer:
The answers are:
A) 80,000 MP3 players
B) $1,400
Explanation:
To solve the following equation we must : C(x) = x² - 160x + 7,800
Step 1)
Since this is a quadratic function (parabola), the minimum value for x= -b/ 2a
where b= -160 ; a = 1
x = - (-160) / 2 = 80
THEY SHOULD PRODUCE 80,000 MP3 PLAYERS
Step 2)
Then we replace x = 80
C (80) = 80² - (160 x 80) + 7,800 = 1,400
THE MINIMUM MARGINAL COST FOR PRODUCING 1,000 MP3 PLAYERS IS $1,400
Answer:
702.20
Explanation:
Optimal order quantity Q = D+ z σ
Where D is the average demand = 500 units
And σ is the standard deviation of demand = 300
Cu = Cost of stock-out (underestimation) = Selling price – unit cost = $25 -$10 = $15
Co = Cost of excess inventory (overestimation) = Unit cost – Salvage Value = $10 – $5 = $5
Therefore Service level = Cu / (Cu + Co)
= $15/ ($15 + $5)
= 0.75 or 75%
For service level 75% the Z value = 0.674
Therefore, Q = 500+0.674*300 = 702.20
D- Only a fraction of deposits are held in reserve. This is the right and correct answer.
Steve Jobs is a well known businessman all over the globe for being the one who started the multibillionaire business Apple, Inc. And based on his status before, the primary factor that most likely caused stress for Jobs was DEMANDS THAT WERE CREATED BY INDIVIDUAL DIFFERENCES.