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posledela
3 years ago
7

A company makes three products that have the following characteristics: Product A sells for $75 but needs $50 of materials to pr

oduce. It requires 5 minutes on the bottleneck Product B sells for $90 but needs $60 of materials to produce. It also requires 5 minutes on the bottleneck. Product C sells for $110 but needs $70 of materials to produce. It requires 10 minutes on the bottleneck. Using the traditional method, in what sequence should products be scheduled for production
Business
2 answers:
s2008m [1.1K]3 years ago
4 0

Answer:

Sequence is CBA

Explanation:

Contribution margins:

A =75-50-5 = 20

B =90-60-5 =25

C =110-70-10 =30

Sequence is C,B,A

MissTica3 years ago
3 0

Answer:

The products then should be scheduled for production in the sequence C,B,A

Explanation:

Acording to the details of the question Product A requires 5 minutes on the bottleneck, Product B requires 5 minutes on the bottleneck and Product C requires 10 minutes on the bottleneck.  

So the Contribution margins of each of the products can be calculated as follows:

A =75-50-5 = 20

B =90-60-5 =25

C =110-70-10 =30

The products then should be scheduled for production in the sequence C,B,A.

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3 0
3 years ago
You are scheduled to receive annual payments of $60,000 for each of the next 20 years. The annual rate of return is 8 percent. W
babymother [125]

Answer:

= $ 219,657.43

Explanation:

FV of annuity = P x [(1+r) n -1/r]

P = Periodic payment = $ 20,000

r = Periodic interest rate = 0.08

n = Number of periods = 20

FV = $ 60,000 x [(1+ 0.08)20 -1/0.08]

  = $ 60,000 x [(1.08)20 -1/0.08]

  = $ 60,000 x [(4.66095714384931 -1)/0.08]

  = $ 60,000 x (3.66095714384931/0.08)

= $ 60,000 x 45.7619642981163

= $ 2,745,717.85788698 or $ 2,745,717.86

FV of annuity due =(1+r) x P x [(1+r) n -1/r]

                              = (1+0.08) x $ 2,745,717.85788698

                              = 1.08 x $ 2,745,717.85788698

                             = $ 2,965,375.28651794 or $ 2,965,375.29

Difference in FV of ordinary annuity and annuity due

                             = $ 2,965,375.29 - $ 2,745,717.86

                             = $ 219,657.43

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3 years ago
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