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Nata [24]
3 years ago
6

A firm conducted a market analysis and determined that a new wo

Business
1 answer:
forsale [732]3 years ago
4 0
The answer is A the firm should increase output!!!!
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During the annual review of business considering automatics it is observed that there is always a decrease in cross sales and these leads to a reduce in referrals.

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1 year ago
During the final or phaseout stage of the project life-cycle, __________ is the dominant goal of many project managers.
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During the final or phaseout stage of the project life-cycle, scope is the dominant goal of many project managers.
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Evie is very good with computers and using social media. She has created a new email system that automatically generates the ema
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As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) produc
Kobotan [32]

Answer:

A. $74,100 $954,700

B. $880,600

Explanation:

A. Preparation to estimate the financial benefits associated with the adoption of JIT

Current situation After JIT

Sales 1,430,000 1,810,000

Less costs

Production level support 214,500 72,400

(15%*1,430,000=214,500)

(4%*1,810,000=72,400)

Variable manufacturing overhead 400,400 181,000

(28%*1,430,000=400,400)

(10%*1,810,000=181,000)

Direct material 429,000 362,000

(30%*1,430,000=429,000)

(20%*1,810,000=362,000)

Direct manufacturing labor 286,000 235,300

(20%*1,430,000=286,000)

(13%*1,810,000=235,300)

Inventory financing costs 26,000 4,600

(10%*260,000=26,000)

(10%*46,000=4,600)

Total costs 1,355,900 855,300

Operating profits $74,100 $954,700

(1,430,000-1,355,900)

(1,810,000-855,300)

Therefore the the financial benefits associated with the adoption of JIT will be $74,100 $954,700

B. Preparation for the estimated change in annual operating income attributable to the JIT implementation

Current situation After JIT Change

Sales 1,430,000-1,810,000=-380,000

Less costs

Production level support 214,500-72,400 =142,100

Variable manufacturing overhead 400,400 -181,000=219,400

Direct material 429,000-362,000=67,000

Direct manufacturing labor 286,000- 235,300= 50,700

Inventory financing costs 26,000-4,600 =21,400

Total costs 1,355,900-855,300=500,600

Operating profits 74,100-954,700=880,600

Therefore the estimated change in annual operating income attributable to the JIT implementation will be 880,600

8 0
3 years ago
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