Business

Chen Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were:materials, $15; conversion, 59. The cost of the company’s ending work-in-process inventory is:$22.

Chen Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were: materials, $15; conversion, $22. 59. The cost of the company’s ending …

Chen Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were:materials, $15; conversion, 59. The cost of the company’s ending work-in-process inventory is:$22. Read More »

Freezee, a manufacturer of refrigerators in the US, currently has plants in Kentucky, Pennsylvania, N. Carolina, and California. The Kentucky plant has a capacity of 1 million units a year, Pennsylvania and N. Carolina and California plants have each a capacity of 1.5 million units a year. The firm has 5 markets: Northeast, Southeast, Midwest, South, and West. Freezee anticipates a 50% growth in demand in all regions this year, after which demand will stabilize. Annual fixed costs, production and shipping costs per unit, and current demand (before the 50% growth) are shown in the table 1 below. Variable Production & Shipping Cost ($/Unit) Northeast Southeast Midwest South West Kentucky 185 180 175 Pennsylvania 170 210 180 N. Carolina 180 180 185 California 220 220 195 Demand (‘000 700 400 units/month) 400 Table 1. Variable Product & Shipping Costs for Freezee 175 200 195 195 200 220 215 175 Annual Fixed Cost (Million $) 150 200 150 140 300 600 Freezee’s policy is for each market to be satisfied from a single supplier. a. Determine which plants should be open, how to allocate the demand, and report the optimal costs.

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Blue Computers, a major PC manufacturer in the United States, currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the Pennsylvania plant has a capacity of 1.5 million units a year. The firm divides the United States into five markets: Northeast, Southeast, Midwest, South, and West. Each PC sells for $1,000. The firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. Potential sites being considered are in North Carolina and California. Currently the firm pays federal, state, and local taxes on the income from each plant. Federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. North Carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. Blue Computers would like to take the tax break into consideration when planning its network. Consider income over the next 10 years in your analysis. Assume that all costs remain unchanged over the 10 years. Use a discount factor of 0.1 for your analysis. Annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in Table 5-13. (a) If Blue Computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? How should the network be structured? (b) If Blue Computers sets an objective of maximizing after-tax profits, where should they build the new plant? How should the network be structured? Variable Production and Shipping Cost ($/Unit) Annual Fixed Cost Northeast Southeast Midwest South West (Million$) Kentucky 185 180 175 175 200 150 Pennsylvania 170 190 180 200 220 200 N. Carolina 180 180 185 185 215 150 California 220 220 195 195 175 150 Demand (‘000 units/month) 700 400 400 300 600

Blue Computers, a major PC manufacturer in the United States, currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the Pennsylvania plant has a capacity of 1.5 million units a year. The firm divides the United States into five markets: Northeast, Southeast, Midwest, South, …

Blue Computers, a major PC manufacturer in the United States, currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the Pennsylvania plant has a capacity of 1.5 million units a year. The firm divides the United States into five markets: Northeast, Southeast, Midwest, South, and West. Each PC sells for $1,000. The firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. Potential sites being considered are in North Carolina and California. Currently the firm pays federal, state, and local taxes on the income from each plant. Federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. North Carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. Blue Computers would like to take the tax break into consideration when planning its network. Consider income over the next 10 years in your analysis. Assume that all costs remain unchanged over the 10 years. Use a discount factor of 0.1 for your analysis. Annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in Table 5-13. (a) If Blue Computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? How should the network be structured? (b) If Blue Computers sets an objective of maximizing after-tax profits, where should they build the new plant? How should the network be structured? Variable Production and Shipping Cost ($/Unit) Annual Fixed Cost Northeast Southeast Midwest South West (Million$) Kentucky 185 180 175 175 200 150 Pennsylvania 170 190 180 200 220 200 N. Carolina 180 180 185 185 215 150 California 220 220 195 195 175 150 Demand (‘000 units/month) 700 400 400 300 600 Read More »

Question: 3. Explain why a periodic-review system, in general, will carry mo

3. Explain why a periodic-review system, in general, will carry more inventory than a continuous-review system. 4. Caterpillar has its engine plant in Austin, Texas and its equipment assembly plant in Denver, Colorado. Engines are transported between the two plants using trucks. Each truck trip costs $1,500. The assembly plant sells 300 finished products each …

Question: 3. Explain why a periodic-review system, in general, will carry mo Read More »

Blue Computers, a major server manufacturer in the U.S. currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the Pennsylvania plant has a capacity of 1.5 million units a year. The firm divides the U.S. into five markets: Northeast, Southeast, Midwest, South, and West. The firm anticipates a 50 percent growth in demand in each region this year (after which demand will remain stable). The firm wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. Potential sites being considered are in North Carolina and California. If Blue Computers has the objective of minimizing total fixed and shipping costs, where should it build its plant and what should its shipping plan be?

Blue Computers, a major server manufacturer in the U.S. currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the Pennsylvania plant has a capacity of 1.5 million units a year. The firm divides the U.S. into five markets: Northeast, Southeast, Midwest, South, and West. …

Blue Computers, a major server manufacturer in the U.S. currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the Pennsylvania plant has a capacity of 1.5 million units a year. The firm divides the U.S. into five markets: Northeast, Southeast, Midwest, South, and West. The firm anticipates a 50 percent growth in demand in each region this year (after which demand will remain stable). The firm wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. Potential sites being considered are in North Carolina and California. If Blue Computers has the objective of minimizing total fixed and shipping costs, where should it build its plant and what should its shipping plan be? Read More »

Question: Blue Computers, a major server manufacturer in the U.S. current

Demand Growth Factor 0.5 Variable Production and Shipping Costs Annual Fixed Cost 150,000 200,000 150,000 150,000 Capacity Limit of Current Plants 1,000 1,500 must compute must compute Northeast Southeast Midwest South $ 185 180 175 175$ 200 $ $170$190$ 180$ 200$220 $ West Kentucky Pennsylvania N.Carolina California Demand 180 $ $220$ 220 180 S 185 …

Question: Blue Computers, a major server manufacturer in the U.S. current Read More »

Question: 4-97 Determine the present equivalent value of the cash-flow di

Determine the present equivalent value of the cash-flow diagram of Figure P4-97 (p. 204) when the annual interest rate, k , varies as indicated. (4.13). p=F( %, N) Ps – 2000 .10%, 1) = 2000(0.9041) -1818.2. Du = Ps 16%,0)+1000 = 1818.2(0.9434) 1000 = 2,715.201… Pz = Pu (2,6%, 1) = 2415.281(0.9434) – 2561.60us . …

Question: 4-97 Determine the present equivalent value of the cash-flow di Read More »