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kirza4 [7]
3 years ago
14

Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next

six months using the following information: MONTH 1 2 3 4 5 6 Demand 160 150 160 180 170 140 Capacity Regular 150 150 150 150 160 160 Overtime 10 10 0 10 10 10 Cost Per Unit Regular time $ 50 Overtime 75 Subcontract 80 Inventory, per period 4 Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed. Regular production and overtime production can be less than capacity in any month.

Business
1 answer:
Brums [2.3K]3 years ago
4 0

Answer:

Wormwood limited

Production plan that will yield the least cost of $49,630 is shown in the attached document.

It entails maxing out the regular capacity from period 1 to 5, and using regular to produce only 140 units in period 6

It further entails using overtime to produce 10 units from period 1 to 5. And subcontracting only in period 4 to cover the demand/production gap.

This will keep inventory of 10 units in period 2, which is carried into period 3 and consumed in period 4.

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Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payme
mezya [45]

Answer: a. $120,000

b. $6,000

c. Yes

Explanation:

a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.

If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.

That amount would be,

= $60,000 * 2

= $120,000

b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.

The amount saved therefore is,

= 120,000 * 5%

= $6,000

By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.

c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.

As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.

8 0
3 years ago
All of the following phrases describe a partnership except
tamaranim1 [39]
All of the following phrases describe a partnership except (<span>B) high protection for your personal assets. Being with a partnership, at least, you have this idea of shared responsibility in making decisions for the company. Always, starting with low costs will surely be experienced in partnerships. The involvement between you and your partner will be up to 20 depends on the agreement.</span>
3 0
3 years ago
26. Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par val
maksim [4K]

Answer:

2.11%

Explanation:

From the information given; we use the Excel spreadsheet to compute the  difference between this bond's YTM(Yield to maturity) and its YTC(Yield to call).

From the diagram; we will see that the

YTM(Yield to maturity) = 8.91%

YTC(Yield to call).= 6.81%

Therefore the difference between this bond's YTM and its YTC = (8.91 - 6.81)%

the difference between this bond's YTM and its YTC = 2.11%

7 0
3 years ago
A red sleeveless dress has been a fast seller at a clothing store. Which of these might raise the price of the dress? A.A change
grigory [225]

Correct answer choice is:


D. A reduction in the number of dresses available from the manufacturer.


Explanation:


As per the law of supply and demand, a product tends to experience a rise in costs if the availability is faded. When the availability is faded, the merchandise becomes a lot more limited and provides the vendor additional power to extend the worth if the purchasers wish to accumulate it.

8 0
3 years ago
Read 2 more answers
Each unit requires 2 pounds of direct materials, which cost $6 per pound. The company’s policy is to maintain direct materials i
ycow [4]

Answer: Budgeted Raw Material to be consumed in July.

Quantity         Price per pound             Total

10,200                 $6                             $61,200

Explanation:

As for the information provided, the material at month end in hand shall be:

20% of upcoming month's sale.

If in June at month end, the inventory in hand = 2,040 pounds of raw material.

Then, this represents 20% of total requirement of July.

Therefore, total requirement in July = \frac{2,040}{0.20} = 10,200\ pounds

This basically means:

Total inventory required =

Quantity         Price per pound             Total

10,200                 $6                             $61,200

5 0
2 years ago
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