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const2013 [10]
3 years ago
10

The following forecast constitutes the demand for relay switches. John Smith, the production planner, has assembled the followin

g cost data and the quarterly demand forecast:______.
Quarter Forecast
1 1800
2 1100
3 1600
4 900
Costs/Other Data
Previous quarter’s output = 1300 cases
Beginning inventory = 350 cases
Stock-out cost = $110 per case
Inventory holding cost = $30 per case at the end of quarter
Hiring employees = $40 per case
Terminating employees = $75 per case
Subcontracting cost = $60 per case
Unit cost on regular time = $30 per case
Overtime cost = $20 extra per case
John's job is to develop an aggregate plan. The three initial options he wants to evaluate are
Plan A: a strategy that hires and fires personnel as necessary to meet the forecast
Plan B: a level strategy
Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecast demand with inventory and subcontracting.
a. What is the cost of plan A?
b. What is the cost of plan B?
c. What is the cost of plan C?
d. If you are John's boss, the VP for operations, which plan do you implement and why?

Business
1 answer:
sattari [20]3 years ago
4 0

Answer:

a. $256,250

b. $217,562.5

c. $196,500

d. Plan C, due to its fewer total cost incurred compares to the other two plans.

Explanation:

a. What is the cost of Plan A

b. What is the cost of Plan B

c. What is the cost of plan c.

d. If you are John's boss, the VP operations, which plan would you implement and why?

Please find attached detailed solution to the above questions.

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Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:
NemiM [27]

Answer:

Avoidable cost

Explanation:

An avoidable cost can be eliminated in a whole. Such a cost can be explained as an expense that would not happen if the specific activity is not done. These costs are relevant costs. A very good example of such a cost is labour cost. If there is a decision to stop a product line for example, all costs that have a relationship with this product line will also be stopped.

5 0
3 years ago
If bonds with a face value of $208,000 are issued at 97, the amount of cash proceeds is ____
madam [21]

Answer:

C) $201,760

Explanation:

To compute the amount of cash proceeds, we have to multiply the bonds face value with the issued price percentage.  

Since only issue price is given, so we assume it is in percentage form because the number of shares is not given in the question. So, we assume this.  

In mathematically,  

Cash proceeds = Face value × 0.97

                          = $208,000 × 0.97

                          = $201,760

4 0
3 years ago
Monique Products, a web-based company, maintains no manufacturing facilities. As orders come in, the company contracts with othe
Sonbull [250]

Answer:

The correct answer is: a virtual corporation.

Explanation:

Virtual corporations are becoming more common with the massification of the internet and communications. They are generally companies that are dedicated to the commercialization of products and generate a massive movement in the network that allows them to be in the "voice to voice" of people. They do not have physical facilities, which saves them expenses such as leasing and public services, and the contracted staff is minimal. These companies are based on the strategy of fast and massive shipments through transport companies in order to satisfy the needs of their clients.

8 0
3 years ago
Wattan Company reports beginning inventory of 11 units at $65 each. Every week for four weeks it purchases an additional 11 unit
larisa86 [58]

Solution:

Activity Units Units cost Cost of Goods Available

Beginning Inventory                11     $65.00      $715

1st week purchase                   11      $66.00     $726

2nd week purchase                 11      $67.00     $737

3rd week purchase                  11      $70.00     $770

4th week purchase                  11      $75.00     $825

Units available for sale            55

Cost of goods available for sale                       $3,773

5 0
3 years ago
Angela has been working for a local small business called Personal Wellness for the last three years. It is a retail business th
GarryVolchara [31]

Answer:

Government regulations.

Explanation:

Government regulations is a law that controls the way that a business can operate, or all of these laws considered together

3 0
3 years ago
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