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HACTEHA [7]
3 years ago
10

Carol Cagle has a repetitive manufacturing plant producing trailer hitches in​ Arlington, Texas. The plant has an average invent

ory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one​ component, the safety chain​ clip: Setup labor cost ​$25 per hour Annual holding cost ​$13 per unit Daily production 960 ​units/8 hour day Annual demand 23,000 ​(250 days eachtimes×daily demand of 92 ​units) Desired lot size 120 units​ (one hour of​ production)
To obtain the desired lot size, the set-up time that should be achieved = ___ minutes.
Business
1 answer:
lions [1.4K]3 years ago
8 0

Answer:

0.1472 hours or 8.832 minutes

Explanation:

Annual demand- 23,000 units

Daily demand – 92 units

Daily production – 960 units  per 8 hour day

Desired lot size - 120 units

Holding cost per unit per year - $13 per unit

Set up labor cost per hour - $25 per hour

Set up cost:

= {(120 × 120) × $13 × [1 - (92 ÷ 960)]} ÷ [2 × (23,000) ]

= $169,260 ÷ 46,000

= $3.68

Set up time:

= Set up cost ÷ Set up labor cost per hour

= $3.68 ÷ $25 per hour

= 0.1472 hours or 8.832 minutes

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3 years ago
An all-equity business has 100 million shares outstanding selling for $20 a share. Management believes that interest rates are u
dedylja [7]

Answer:

a) Market Value = $100 million × $20 = $2,000 million = $2 billion

Market value of equity would remain same = $2 billion

b) Market value would remain same after recap. Only market capitalization would reduce to half.

Market value of equity = 1 billion

c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.

d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.

e) Equity shareholders have gained due to increase in there share value

Explanation:

4 0
3 years ago
On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue a
yulyashka [42]

Answer:

Dr Notes Payable 4500

Dr Interest expense 75

Cr Cash 4575

Explanation:

Based on the information given if On April 12, the Hong Company agrees to accept a 60-day which include the amount of $4,500 note from Indigo Company which means that in order to extend the due date on an overdue account the journal entry that Indigo Company would make, when it records payment of the note on the maturity date is :

Dr Notes Payable 4500

Dr Interest expense 75

(4500/60 days)

Cr Cash 4575

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7 0
3 years ago
You are considering the purchase of a hybrid Honda Civic. Assume that you drive 12,000 per year, and will keep the auto for 10 y
Norma-Jean [14]

Given these assumptions, you should not buy this hybrid.

<u>Explanation:</u>

The idea of the present value factor depends on the time estimation of cash - that is, cash gotten now is worth more than cash got later on, since cash got now can be reinvested in an elective speculation to procure extra money.

The PV of the savings funds is $2,070 which is not exactly the cost of difference. You need a more noteworthy reserve funds to financially legitimize the acquisition of this hybrid car (for example the NPV is negative).

4 0
4 years ago
Can the government require a company to recall a product if they believe it is harmful to consumers?
Ymorist [56]

Answer:

A.Yes. They have the power to remove it if they believe it’s harmful.

Explanation:

When the government have reasons to believe that a product is potentially harmful to consumers and or buyers, they have the right to require a company to recall a product, if they believe it is harmful to consumers, because it is then the governments responsibility to protect the public.

3 0
3 years ago
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