1. Your company is making experimental turbochargers for a new design of high-powered farm tractors. The production schedule for these new components is contained in the table below. Month Turbochargers 1 2 3 4 5 7 6 7 10 5 The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your experience with similar products, the learning factor is 85%. You have 20 employees, and each employee works 160 hours per month. What is the average number of working hours is required per month?

1. Your company is making experimental turbochargers for a new design of high-powered farm tractors. The production schedule for these new components is contained in the table below. Month Turbochargers 1 2 3 4 5 7 6 7 10 5 The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your experience with similar products, the learning factor is 85%. You have 20 employees, and each employee works 160 hours per month. What is the average number of working hours is required per month?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 23E: Bordner Company manufactures HVAC (heating, ventilation, and air conditioning) systems for...

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ondor Airplane Company has built a new model jet aircraft which it intends to sell to high net worth clients. This aircraft required 25,000 hours to complete. Condor believes an incremental unit-time learning model with an 82% learning curve best reflects the company's production efficiency. Condor just received a contract to make fifteen identical aircraft. What will be the expected unit time for the sixteenth aircraft?
To complete the first setup on a new machine took an employee 100 minutes. Using an 80% incremental unit-time learning model indicates that the second setup on the new machine is expected to take ________. Select one: a. 70 minutes b. 80 minutes c. 120 minutes d. 60 minutes
Based on recent experience, a company knows that its production follows an 80% learning eurve. The unit variable cost of the 100 unit, which the company just produced, was $30. To complete a price quote for a customer with a special order for another 100 units, the compary needs to knew what their unit variable cost will be at the end of the special project. Which of the following is the best answer? O A. $37.50 O B. $30.00 OC. $24.00 D D. $6.00 DE. Cannot be determinec from the information given
Zarget Ltd produce hand held medical equipment and are developing a new product to bring to the market. The prototype took 5 labour hours to produce at a cost of £15 per labour hour. Other variable costs amount to £45 per unit. It is estimated that an 80% learning curve will apply and that steady state will be reached after 100 units have been produced. They expect to be able to produce and sell 300 units in the next 12 months. (b=-0.3219) Required: Calculate the total variable cost of producing 300 units taking into consideration the learning curve effect.
Bordner Company manufactures HVAC (heating, ventilation, and air conditioning) systems for commercial buildings. For each new design, Bordner faces a 90 percent learning rate. On average, the first unit of a new design takes 600 hours. Direct labor is paid 25 per hour. Required: 1. Set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, and cumulative total time in hours. Show results by row for total production of one unit, two units, four units, eight units, and sixteen units. (Round hour answers to two significant digits.) 2. What is the total labor cost if Bordner makes the following number of units: one, four, sixteen? What is the average cost per system for the following number of systems: one, four, or sixteen? (Round your answers to the nearest dollar.) 3. Using the logarithmic function, set up a table with columns showing: the cumulative number of units, cumulative average time per unit in hours, cumulative total time in hours, and the time for the last unit. Show results by row for each of units one through eight. (Round answers to two significant digits.)
1. You have just graduated from the BTEC program of UTAS and one of your favorite courses was "Entrepreneurship." In fact, you enjoyed it so much you have decided you want to "be your own boss." Your grandfather has given you OMR 130000 to do whatever you wish. He also gives you 10000 in the second year. You have decided that you would like to purchase an old paper factory using all the money and launch a new tissue paper product. The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 5 years. After 5 years you will go on to something else. The salvage value at the end of the 5th year is OMR 7000. Cash Outflow Cash Inflow Year (OMR) (OMR) 130000 1 10000 20000 2 30000 3 60000 4 80000 20000 It is funded by both debt and equity and currently has a weighted cost of capital (Discount rate) of 8%. Answer the following questions: - A. Calculate the Internal rate of return and net present value for the above project. Critically…
1. You have just graduated from the BTEC program of UTAS and one of your favorite courses was “Entrepreneurship.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” Your grandfather has given you OMR 130000 to do whatever you wish. He also gives you 10000 in the second year. You have decided that you would like to purchase an old paper factory using all the money and launch a new tissue paper product. The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 5 years. After 5 years you will go on to something else. The salvage value at the end of the 5th year is OMR 7000. Year Cash Outflow (OMR) Cash Inflow (OMR) 0 130000 - 1 10000 20000 2 - 30000 3 - 60000 4 - 80000 5 - 20000 It is funded by both debt and equity and currently has a weighted cost of capital (Discount rate) of 8%. Answer the following questions: - A. Calculate the Internal rate of return and net…
13. Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $600 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9600. Micromedia rents computers for its seminars at a cost of $60 per computer per day. a. Develop a model for the total cost to put on the seminar. Let x represent the number of students who enroll in the seminar. b. Develop a model for the total profit if x students enroll in the seminar. e. Micromedia has forecasted an enrollment of 30 students for the seminar. How much profit will be earned if its forecast is accurate? d. Compute the breakeven point.
The manager of an e-learning company identified a new course that they could create and sell for $100 per student. The costs for adding this new course to their product offering would be: $2,100 per month to lease additional space, $290 per month for insurance, $4,900 per month for support staff, $3,600 per month for sales staff, and variable costs of $4 per student. They can sell to a maximum of 750 students per month. a. For the company to break even per month, how many students would have to purchase the course? 0 Round up to the next whole number b. If they made a profit of $34,650 last month, how many students purchased the course?
You run a software development business where customers require immediate technical support. You plan to target 1,092 users this month of which 12.22% will convert and become customers. Each customer will require about 48 minutes of phone support per month from the first month. You plan to recruit the support staff on an hourly basis for $27.7 per hour plus 21.3% in benefits. For every 30 minutes of phone support, each support staff will be entitled to another 15 minutes of administrative and email/messaging support time. How much is the monthly support expense for the customers targeted this month assuming no churn? Options: $5,380 $5,515 $5,649 $5,784 $5,918
1. Eddie is a production engineer for a major supplier of component parts for cars. He has determined that a robot can be installed on the production line to replace one employee. The employee earns $20 per hour and benefits worth $8 per hour for a total annual cost of $58,240 this year. Eddie estimates this cost will increase 6% each year. The robot will cost $16,500 to operate for the first year with costs increasing by $1500 each year. The firm uses an interest rate of 15% and a 10- year planning horizon. The robot costs $75,000 installed and will have a salvage value of $5000 after 10 years. Should Eddie recommend that purchase of the robot?
NUBD Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 16,000 units based on the cumulative average-time learning curve? 655.36 hours 256 hours 160 hours 409.6 hours