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
Artemon [7]
3 years ago
7

Complete the bill of materials by calculating the extended cost of each component and the total materials cost for each brake sy

stem. develop a sensitivity analysis to show the impact on total brake system materials costs if the front brake calipers unit cost ranges from $103 to $107 and if the brake pipe unit cost ranges from $27 to $31.

Business
1 answer:
Nostrana [21]3 years ago
7 0

Complete Question:

A hypothetical bill of materials is used in manufacturing and production to show all of the parts and materials required to manufacture a specific item or for the subassembly of a finished product, such as a motorcycle. The information in the bill of materials is useful for determining product costs, coordinating orders, and managing inventory. It can also show how product costs will be affected by price changes in components or raw materials. This project provides you with an opportunity to use spreadsheet software to perform a sensitivity analysis showing the impact of various prices for component parts on the total costs of a dirt bike. The bill of materials for this project has been simplified for instructional purposes.  

Dirt Bikes’s management has asked you to explore the impact of changes in some of its parts components on production costs. Review the spreadsheet file containing bill of materials information for the brake system for Dirt Bikes’s Moto 300 model, which can be found on the Laudon Web site for this chapter. The completed bill of materials contains the description of the component, the identification number of each component, the supplier (source) of the component, the unit cost of each component, the quantity of each component needed to make each finished brake system, the extended cost of each component, and the total materials cost. The extended cost is calculated by multiplying the quantity of each component needed to produce the finished brake system by the unit cost. The prices of components are constantly changing, and you will need to develop a spreadsheet application that can show management the impact of such price changes on the cost to produce each brake system and on total production costs for the Moto 300 model.  

<em>-Complete the bill of materials by calculating the extended cost of each component and the total materials cost for each brake system.  </em>

<em>-Develop a sensitivity analysis to show the impact on total brake system materials costs if the front brake calipers unit cost ranges from $103 to $107 and if the brake pipe unit cost ranges from $27 to $30.  </em>

-The brake system represents 30 percent of the total materials cost for one Moto 300 motorcycle. Use sensitivity analysis again to show the impact of the changes in front brake caliper unit costs and brake pipe unit costs described previously on total materials costs for this motorcycle model.

Answer and explanation:

Check the attached files for well formatted answers

(a)

Component Component No. Source Unit Cost Quantity Extended Cost

Brake cable M0593 Nissin 27.81 1 27.81

Brake pedal M0546 Harrison Billet 6.03 2 12.06

Brake pad M3203 Ressell 27.05 2 54.1

Front brake pump M0959 Brembo 66.05 1 66.05

Rear brake pump M4739 Brembo 54.00 1 54

Front brake caliper M5930 Nissin 105.20 1 105.2

Rear brake caliper M7942 Nissin 106.78 1 106.78

Front brake disc M3920 Ressell 143.80 1 143.8

Rear brake disc M0588 Ressell 56.42 1 56.42

Brake pipe M0943 Harrison Billet 28.52 1 28.52

Brake lever cover M1059 Brembo 2.62 1 2.62

Total Cost 657.36

(b)

We use a two-way data table to show the sensitivity of the total cost with respect to changes in price for the front brake calipers unit and the brake pipe unit.

Brake pipe price

653.64 $27 27.5 $28 28.5 $29 29.5 $30

Front brake caliper price $103.0 $653.6 $654.1 $654.6 $655.1 $655.6 $656.1 $656.6

$103.5 $654.1 $654.6 $655.1 $655.6 $656.1 $656.6 $657.1

$104.0 $654.6 $655.1 $655.6 $656.1 $656.6 $657.1 $657.6

$104.5 $655.1 $655.6 $656.1 $656.6 $657.1 $657.6 $658.1

$105.0 $655.6 $656.1 $656.6 $657.1 $657.6 $658.1 $658.6

$105.5 $656.1 $656.6 $657.1 $657.6 $658.1 $658.6 $659.1

$106.0 $656.6 $657.1 $657.6 $658.1 $658.6 $659.1 $659.6

$106.5 $657.1 $657.6 $658.1 $658.6 $659.1 $659.6 $660.1

$107.0 $657.6 $658.1 $658.6 $659.1 $659.6 $660.1 $660.6

(c)

Just by dividing all elements of the above data table by 030, we will get the sensitivity of the total cost.

Brake pipe price

$27.0 $27.5 $28.0 $28.5 $29.0 $29.5 $30.0

Front brake caliper price $103.0 $2,178.80 $2,180.47 $2,182.13 $2,183.80 $2,185.47 $2,187.13 $2,188.80

$103.5 $2,180.47 $2,182.13 $2,183.80 $2,185.47 $2,187.13 $2,188.80 $2,190.47

$104.0 $2,182.13 $2,183.80 $2,185.47 $2,187.13 $2,188.80 $2,190.47 $2,192.13

$104.5 $2,183.80 $2,185.47 $2,187.13 $2,188.80 $2,190.47 $2,192.13 $2,193.80

$105.0 $2,185.47 $2,187.13 $2,188.80 $2,190.47 $2,192.13 $2,193.80 $2,195.47

$105.5 $2,187.13 $2,188.80 $2,190.47 $2,192.13 $2,193.80 $2,195.47 $2,197.13

$106.0 $2,188.80 $2,190.47 $2,192.13 $2,193.80 $2,195.47 $2,197.13 $2,198.80

$106.5 $2,190.47 $2,192.13 $2,193.80 $2,195.47 $2,197.13 $2,198.80 $2,200.47

$107.0 $2,192.13 $2,193.80 $2,195.47 $2,197.13 $2,198.80 $2,200.47 $2,202.13

You might be interested in
Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year, the company reports th
RUDIKE [14]

Answer:

The income statement, statement of stockholders' equity, and balance sheet for Longhorn Corporation is given below.

<u><em>The income statement</em></u>

Sales Revenue                   $ 67,700

COGS                                 ($ 53,400)

Delivery expenses              ($ 2,600)

Salary expenses                 ($ 5,500)

Net profit                             $ 6,200

<u><em></em></u>

<u><em>Balance Sheet</em></u>

Asset

Cash                                  $ 1,200

Equipment                        $ 29,000

Building                             $ 40,000

Supplies                             $ 3,400

Total Assets                      $ 73,600

Equity

Common Stock                $ 44,000

Retain earning                  $ 24,400

(18,200 + 6,200)

Liability

Account Payable              $ 4,400

Salaries payable                $ 8,00

Total Liabilities                 $ 73,600

<u><em>Statement of Stockholders</em></u>

Opening common Stock           $ 40,000

Addition                                       $  4,000

Closing common Stock              $  44,000

Retain earning Opening            $ 18,200

Net profit                                     $ 6,200

Retain profit Closing                   $ 24,400

Total Equity                                 $ 68,400

4 0
3 years ago
Because Coca-Cola, Nestlé, and PepsiCo all sell a product (bottled water) that is essentially the same and all three giant compa
garik1379 [7]

Answer:

standard-cycle market.

Explanation:

Standard-cycle market are those where a business's competitive advantage is protected from imitation by othe companies and the imitation will be moderately costly.

In this instance the three big companies Coca-Cola, Nestlé, and PepsiCo all sell bottled water. The product is basically the same.

They engage in battles for market share using incremental changes in their products and seeking loyalty to brand names.

This is a form of standard cycle market.

6 0
3 years ago
In preparing a company's statement of cash flows for the most recent year, the following information is available:
lesya [120]

Answer:

c. $139,000 of net cash used.

Explanation:

Investing Activities shows results from Purchase or Sales of Assets or Investments.

Cash flow from Investing Activities

Purchase of equipment                                  (150,000)

Proceeds from the sale of equipment            131,000

Purchase of land                                             (120,000)

Net Cash used by Investing Activities           (139,000)

Net cash flows from investing activities for the year were: ($139,000)

4 0
3 years ago
16. GDP Growth Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2009 dollars) 2011 1
dmitriy555 [2]

Answer:

The percentage change in nominal GDP from 2013 to 2014 was 4.29%

The percentage change in real GDP from 2012 to 2013 was 1.48%

The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE

Explanation:

In order to calculate this we just have to calculate the percentages with a rule of thirds:

\frac{GDP1}{100}= \frac{GDP2}{x}

To calculate the first one we use the nominal GDP which is the GDP with the current market value:

\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{16,663.2}{100}= \frac{17,348.1 }{x}\\x=\frac{(100)(17,348.1}{16,663.2} \\x=4.29%

To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:

\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{15,354.6}{100}= \frac{15,583.3}{x}\\x=\frac{(100)(15,583.3}{15,354.6} \\x=1.48%

To calculate the 2011 to 2012 we insert the values:

\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{ 15,020.6}{100}= \frac{15,354.6}{x}\\x=\frac{(100)(15,354.6}{ 15,020.6} \\x=2.22%

So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012

5 0
3 years ago
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (
mel-nik [20]

Answer:

Explicit costs - $51,000

Explicit costs are those for which a person incurs in actual spending of money. In this case, Christine had to pay $15,000 in wages, and $36,000 in rent ($3,000 x 12). These are expenses that she had to pay money for, and that had to be accounted for in the accounting books, and in the financial statements. These are in other words, explicit costs.

Implicit costs - $40,000

Implicit costs are simply the opportunity costs. An opportunity cost is the cost of the next more valuable alternative when faced with two or more options. No money is paid for this costs. The implicit costs for Christine were the $40,000 that she not receive as wages if she had continued working at a real state firm.

8 0
3 years ago
Other questions:
  • A company is trying to decide which product to manufacture. The following information is available: Costs Product A Product B Di
    11·1 answer
  • Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress
    13·2 answers
  • Mcmurtry Corporation sells a product for $160 per unit. The product's current sales are 12,700 units and its break-even sales ar
    15·1 answer
  • The nominal exchange rate is .80 euros per U.S. dollar and a basket of goods in France costs 1,000 euros while the same basket c
    5·1 answer
  • Make a prioritized task work sheet
    8·1 answer
  • Certain mortgage loans contain a due-on-sale clause, which gives the lender the right to terminate the loan at sale of the prope
    7·1 answer
  • North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Accou
    7·1 answer
  • The person being interviewed is known as:
    6·1 answer
  • Materials Variances Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The
    8·1 answer
  • Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000. Scott provides customers a refund for any r
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!