BUS 400 6-3
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BUS 400 Module Six Assignment Template
24-Month Pro Forma
Insert the appropriate values in each row.
Previous Fiscal Year
24-Month Projections
Sales
$44,538,000,000
$47,507,200,000
Cost of goods sold
$24,576,000,000
$26,804,800,000
Gross profit
$19,962,000,000
$21,702,400,000
Selling expenses
$3,114,000,000
$3,145,140,000
Administrative expenses
$9,911,000,000
$10,902,100,000
Total operating expense
$13,025,000,000
$14,047,240,000
Income from operations
$6,937,000,000
$7,630,700,000
Other income
$34,000,000
$37,400,000
Income before tax and interest
$262,000,000
$288,200,000
Other expense (interest)
$14,000,000
$15,400,000
Income before income tax
$6,661,000,000
$7,327,100,000
Income tax expense
$934,000,000
$1,027,400,000
Net income
$5,727,000,000
$6,299,700,000
Explanation of Assumptions
For the calculations of our 24-month projections, I ended up increasing our sales and COGS by 5% over the 24 month period. This decision was based on conservation and not wanting to overestimate
the value of this new product line. The increase in sales at 5% I used in the calculation which would price
each set of headphones at $200 each. I also estimated that we’d sale $2,969,200,200 worth of headphones over that 24-month period. Since this is a new product line being launched I cannot say for sure how well our consumers will take to this product and the actual sales that will take place. To account for this, I figured that the 5% increase in sales would be a good amount to increase by. For the other calculations I increased those by 10% over the 24-month period, which would mean that there would be a 5% per year increase. I did this because I expect an increase in both taxes and expenses. I also considered other things into my calculations such as the hiring of a new, diversified and qualified team as well as the costs for materials. In conclusion, there is an overall increase in net income, so I believe that this stands as an accurate representation of the calculations of our 24 month projections for
this new product launch for the Nike company.
References
Net, S. A. (2021, Oct 10). Nike Income Statement. Retrieved from stockanalysisonnet.com: https://www.stock-analysis-on.net/NYSE/Company/Nike-Inc/Financial-Statement/Income-
Statement
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Transcribed Image Text
On hand: 35 Planning time fence: 10 Lot size: 200 Demand time fence: 2 Period 2 4 6. 7 9. 10 11 12 Forecast 30 40 40 50 40 40 30 40 40 50 40 40 Customer Orders 31 35 29 21 17 14 33 11 5 2 Projected Available Available to Promise MPS 200 200 3.
d. Sales has requested that you add an MPS of 200 in period 9 to cover their needs for a sales promotion. What do you tell them and why?e. What action (if any) should be taken in period 11? Why is it okay to take theaction?
I only need question D and E answered
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CAR RENTAL SYSTEM •
A car rental company operates a number of rental locations throughout the metropolitan area.
Since the company has a great business model and provides customer-friendly service, its business has boomed over the last several years. As the business has grown rapidly, the costs of running its business has also increased. In particular, as the job market becomes hot, the labor cost has doubled over the last several years. The company wants to find a solution to reduce its operating cost. The business operation of the company is described as follows. The description is not meant to be complete, and the company is flexible enough to consider any good improvement proposals.
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Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10
Week 2Error on bill 12Noise in hallway 2Longline at check-out…
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Complaint Number of Occurrences
Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10
Week 2Error on bill 12Noise in hallway 2Longline at check-out…
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Course: Operations Management
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Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10
Week 2Error on bill 12Noise in hallway 2Longline at check-out…
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Course: Operations Management
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Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10
Week 2Error on bill 12Noise in hallway 2Longline at check-out…
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Question 2 options:
a)
Depth
b)
Width
c)
Mix
d)
Group
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APP Trial and Error
Given the following information:
Quarter Demand
2 9,000
3 10,200
4 3,300
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Subcontracting Capacity = 10,000 units/qtr Subcontracting Cost = $22/unit
Inventory Cost = $5/unit/qtr
Beginning Inventory = 0 units Backordering Cost = $12/unit/qtr
Beginning workforce = 50 workers Hiring Cost = $2000/worker
Production rate/worker = 200 units/qtr Firing Cost = $5000/worker
Develop a Production Plan using Level Production with Overtime and Subcontracting Strategies.
A) How many units will be…
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Ch 7 Q9
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A warehouse expansion is currently being planned.
QUESTION
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completion costs are estimated at $300,000. Operating costs are estimated to
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ad-valorem taxes) in each of years 1, 2, 3 and 4. Oil prices are forecasted to be
$50.00 per barrel in each of years 1, 2, 3, and 4. Production is summarized in the
following table. The escalated dollar minimum rate of return is 12.0%. Use net
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• Lead time = 1 week
•
Demand Time Fence is at the end of Week #2
MPS Lot Size = 60
On-Hand is 40
Forecast
Customer Orders
PAB
MPS
ATP
1
40
2
35
38 43
3
37
37
Week
4
29
32
S
41
31
6
52
26
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Bill of Material for Office Table
Top Assembly
(1 required)
Bracket
(required)
Office Table Final Assembly
Gross Requirements
Scheduled Receipts
Projected On-Hand Inv
Net Requirements
Planned Order Receipts
Planned Order Releases
Lead Time (in weeks)
Lot Size
Table-Top Assembly
Gross Requirements
Scheduled Receipts
Projected On-Hand Inv
Net Requirements
Planned Order Receipts
Planned Order Releases
Wood Screw
(48 required)
Lead Time (in weeks)
Lot Size
MS.53 An office furniture manufacturer needs to calculate material requirements for one of its most popular tables. The graphic above shows the bill of
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Assembly
Final Assembly
320
1
100
130
2
50
Support Assembly
8/1
Center Support
(1 required)
150
8/1 8/8 8/15 8/22 8/29 9/5 9/12 9/19 9/26
200 200
500
300
800 400
Side Support
[2 required)
8/3 8/15
315 3/12 9/19 3/26
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eBook
Problem 8-21 (Algorithmic)
Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental dass is as follows:
Room
Type 1
Type II
Rental Class
Super Saver
$37
$18.
Deluxe
$40
$33
Business
$35
Type I rooms do not have wireless Internet access and are not available for the Business rental class.
Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 125 rentals in the Super Saver
>
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Required information
[The following information applies to the questions displayed below.]
The first production department of Stone Incorporated reports the following for April.
Direct
Materials
Conversion
Units
Beginning work in process inventory
78,000
Percent
Complete
75%
Percent Complete
25%
Units started this period
412,000
Completed and transferred out
390,000
Ending work in process inventory
100,000
80%
30%
The production department had the cost information below.
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
$ 231,275
36,840
$ 268,115
Total costs to account for
1,296,225
929,160
2,225,385
$ 2,493,500
a. Compute cost per equivalent unit for both direct materials and conversion.
Note: Round "Cost per EUP" to 2 decimal places.
b. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next
department and its ending work in process inventory.…
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Question 8
The following Level 0 MRP information is given for a personal computing system. Monitors for these computing systems are a Level 1 item and each computer receives only one monitor. Using a lead time of one week, what are the Level 1 Gross Requirements for Monitors? Assume any inventory on hand will be used as soon a possible.
Group of answer choices
a. 1100 in week 3, 600 in week 4, 300 in week 5
b. 1100 in week 2, 600 in week 3, 300 in week 4
c. 500 in week 1, 600 in week 2, 200 in week 3
d. 500 in week 2, 600 in week 3, 200 in week 4
e. Impossible to determine from this information
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