1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kumpel [21]
3 years ago
11

Drew's company. Ace High sells customized sets of poker chips. he is developing a plan for next year on a quarterly basis. the e

xpected demand is 600 700 600 and 700 set of chips, respectively for quarters one through four. he currently has 50 sets on hand that can be used to meet next year's demand. he can produce 150 units per month (or 450 per quarter) at the regular rate of $50 per set. His team will work overtime when needed and available. producing up to 300 units in Q1, 150 in Q2. none in Q3 and 200 in Q4. Sets produced via overtime cost a total of $75 per set. he can leverage a competitor firm and outsource production at the cost of $85 per set with a capacity of 300 units per quarter. Storage costs are $7 per set per quarter. Drew has determined that he cannot have lost sales. and that backlogging is not allowed. What is the optimal cost for Drew? Base on the optimal solution: How many total units would be produced via regular time? How many total units would be produced via overtime? How many units would be produced via subcontracting? How many units of excess capacity are there?
Business
1 answer:
Furkat [3]3 years ago
8 0

Answer:

a) it will first use overtime production and then, subcontract competitor

b) It will produce 650 units during overtime

c) it will purchase 100 units via subcontracting

d) considering the outsource production, the company could be able to produce and sale 1,100 extra units As the subcontractor can produce up to 300 sets per uarter giving a capacity of 1,200 per year and we only use 100 sets.

Explanation:

The company will operate at full capacity thus, producing 450 per uqarter now we need to check if it is better to do overtime or to outsource:

$50 cost of set produced in overtime.

storage cost $7

Total: $57 dollars

outsource $85

<em>It is better to produce and store rather than outsource.</em>

Q1 600- 450 = 150 units

The company will produce his <em>overtime of 300 units</em>

150 - 300 =<em> 150 set are stored to next quarter.</em>

Q2 700 - 450 = 350 units

350 units - 150 stored - <em>150 overtime</em> = <em>50 outsource</em>

Q3 600 - 450 = 150 units

there is no store and no overtime available thus, all are <em>outstource</em>

Q4 700 - 450 = 250 units

250 - <em>200 overtime</em> = <em>50 outsource</em>

You might be interested in
ABC Mechanics charges an estimate fee of $100 plus $40 per hour, x, in labor. XYZ Mechanics charges an estimate fee of $65 plus
Dima020 [189]

Answer:

5 hours  would work! Hope it helps!

Explanation:

100 off top!

40 in labor for each hour

40 times 5 is 200

so that would cost 300

for xyz

65 off top and 50 in labor for each hour

5 times 50 is 250

250 plus 65 is 315 !

7 0
3 years ago
In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be:
ser-zykov [4K]

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be higher than its target position

Option B

<u>Explanation: </u>

Negotiation is a political dialogue that addresses a problem in a way acceptable to both sides. That group tries in a discussion to convince the other to adhere to its views. Both parties involved tend not to argue, rather seek to find some kind of agreement by mediation.

Talks require others, so that one side is always in the forefront of the talks. Nevertheless, even when the concession is marginal, the other should surrender.

Negotiation parties can differ. These may include negotiations between purchasers or even between the government of several or more nations, employers and future employees.

6 0
3 years ago
The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks.
zheka24 [161]
To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%
7 0
3 years ago
B. Lopez Company reports unadjusted first-year merchandise sales of 221,000 and cost of merchandise sales of $64,000. The compan
Annette [7]

Answer: See explanation

Explanation:

The year-end adjusting entry to record the cost side of sales returns and allowances will be:

Dr Inventory Return estimated $3200

Cr Cost of goods sold $3200

(To record expected coat of returns)

Note that the above calculation was done as:

= $64,000 × 5%

= $64,000 × 0.05

= $3200

3 0
2 years ago
To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $
Ganezh [65]

Answer:

North American Courier Corporation

1. Appropriate Entries:

Jan. 1, 2021:

Debit Cash Account $503,000

Credit Building $500,000

Credit Gain on Sale-Leaseback $3,000

To derecognize the asset and recognize the gain on the sale-leaseback.

Dec. 31, 2021:

Debit Lease Rental $89,023

Credit Cash Account $89,023

To account for the lease rental for the year.

Note: This treatment is in accordance with ASC 842 and not IFRS 16, which has withdrawn the concepts of operating and finance (capital) leases.  The treatment under IFRS 16 is quite different.

Explanation:

A transaction qualifies for sale and leaseback accounting under ASC 840 when an entity has determined if the transfer of the underlying asset meets the definition of a sale under ASC 606 Revenue from Contracts with Customers.   The two key criteria which can be used by an entity to determine this, are as follows:

1. Does a contract exists; and

2. Has control of the asset been transferred?

We believe that the criteria are met.  Since this transaction qualifies for sale and leaseback accounting under the old ASC 840, the accounting for the Seller-lessee (North American Courier Corporation) is:

1. Recognize transaction price (determined under ASC 606) when buyer-lessor obtains control, adjusted for any off-market terms

2. Derecognize the carrying amount of the underlying asset

3. Recognize gain or loss in full, subject to any off-market terms

4. Account for the (operating) lease in accordance with ASC 840.

8 0
3 years ago
Other questions:
  • Taxpayers filing single, regardless of whether they did or did not engage in a specified service trade or business, will only be
    8·1 answer
  • What is the defintion of liquidity ​
    9·2 answers
  • 2. Which of the following statements about money are correct?
    10·2 answers
  • Calculate the present values for the perpetuity: (1) Annual amount $20000, discount rate 8% (2) Annual amount $10000, discount r
    6·1 answer
  • For higher levels of management, responsibility accounting reports a.contain about the same level of detail as reports for lower
    13·1 answer
  • Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. June 1 Purchased raw m
    6·1 answer
  • The proper time to determine a​ company's business model is following the​ _______ of the business idea and prior to fleshing ou
    11·1 answer
  • Solve the equation.5x+7-3x=-10
    12·1 answer
  • Suppose the supply function for avocados is Q = 58 + 15p - 20p_f. where P_f is the price of fertilizer. If the price of fertiliz
    13·1 answer
  • What is a good name for a bakery
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!