Hasty can produce 1,100 pairs of sneakers per hour at maximum efficiency. There are four 6-hour shifts each day.Due to unavoidable operating interruptions, production averages 1,000 units per hour. The plant actually operatesonly 26 days per month. Based on the current month's budget, Hasty estimates that it will be able to sell only 613,000units due to the entry of a competitor with high personalization capabilities. But demand is unlikely to be affected infuture and will average around 621,000 units each month.Assuming 30 days per month, calculate Hasty's monthly (1) theoretical capacity. (2) practical capacity. (3) normalcapacity utilization, and (4) master-budget capacity utilization.

Maximum Efficiency Production per hour = 1100 pairsShifts per day = 4Hours per shift = 6Number of…

Answered: ssuming 30 days per month, calculate…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Charles Lackey operates a bakery in Idaho Falls,Idaho. Because of its excellent product and excellent loca-tion, demand has increased by 25% in the last year. On far toomany occasions, customers have not been able to purchasethe bread of their choice. Because of the size of the store, nonew ovens can be added. At a staff meeting, one employeesuggested ways to load the ovens differently so that moreloaves of bread can be baked at one time. This new processwill require that the ovens be loaded by hand, requiring addi-tional manpower. This is the only thing to be changed. If thebakery makes 1,500 loaves per month with a labor produc-tivity of 2.344 loaves per labor-hour, how many workers willLackey need to add? (Hint: Each worker works 160 hours permonth.)
Cost Relationships ChimneySweep provides cleaning services for residential chimneys and fireplaces. The cleaning service requires $35 in variable costs for cleaning materials. The fixed costs oflabor, the company’s truck, and administrative support are $165,000 per year. ChimneySweep averages 100 service calls per month.Required What is the average cost per cleaning service call?
Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead. Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. Data Units Per unit Relevant? Sales price per unit 5,450 $ 104.00 Direct materials per unit 21.00 Direct labor per unit 18.00 Variable manufacturing overhead per unit 15.00 Fixed manufacturing overhead (MOH) : per month 21.00 Avoidable fixed MOH per month Unavoidable fixed MOH per month Sales commissions per unit 4.00 Advertising costs per month…
Acme Steel Fabricators experienced booming business forthe past five years. The company fabricates a wide range ofsteel products, such as railings, ladders, and light structuralsteel framing. The current manual method of materials han-dling is causing excessive inventories and congestion. Acmeis considering the purchase of an overhead rail-mountedhoist system or a forklift truck to increase capacity and im-prove manufacturing efficiency.The annual pretax payoff from the system depends on futuredemand. If demand stays at the current level, the probabilityof which is 0.50, annual savings from the overhead hoist willbe $10,000. If demand rises, the hoist will save $25,000 annu-ally because of operating efficiencies in addition to new sales.Finally, if demand falls, the hoist will result in an estimatedannual loss of $65,000. The probability is estimated to be 0.30for higher demand and 0.20 for lower demand.If the forklift is purchased, annual payoffs will be $5,000if demand is unchanged,…
Havana House restaurant normally seats 100, but during hours at dinnertime an additional 50 seats are made available by opening an attached banquet room. Using yesterday’s data, complete the table below and answer the questions this operation’s revenue generation during lunchtime, which is served from 11 am –3 pm. Hour Available seats Guest served Revenue RevPASH 11 am – 12 pm 45 $825 12 pm – 1 pm 135 $2550 1 pm – 2 pm 85 $1575 2 pm – 3 pm 30 $490 Total lunch
Let’s say that Glass For Sale, Inc. manufacturers replacement glass for the home remodelingindustry. In January, the company produces fifteen-thousand windows and ended the monthwith nine-thousand windows in inventory. Glass For Sale’s management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable due to the fact that it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown in Table two, the management teamdoes not think a smooth production schedule with the same production quantity each month is possible. The company’s cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by one dollar for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next…
Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company? S100
Charles Lackey operates a bakery in Idaho Fals, Idaho. Because of its excellent product and excelent location, demand has inoreased by 25% in the last year. On far boo many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a statf meeting, one employee suggested ways to load the ovens differently eo that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month, Employees are paid S8 per hour. In addtion to the labor cost. Charles also has a constant utity cost per month of $850 and a per loaf ingredient cost of $0.50 Current multtactor productivity for 640 wark hourn per month - 0223 loavesidolar (round your response to three decimal places) Ater increasing the number of…
Charles Lackey operates a bakery in Idaho Falls,Idaho. Because of its excellent product and excellent location,demand has increased by 25% in the last year. On far too manyoccasions, customers have not been able to purchase the bread oftheir choice. Because of the size of the store, no new ovens can beadded. At a staff meeting, one employee suggested ways to loadthe ovens differently so that more loaves of bread can be baked atone time. This new process will require that the ovens be loadedby hand, requiring additional manpower. This is the only thingto be changed. If the bakery makes 1,500 loaves per month witha labor productivity of 2.344 loaves per labor-hour, how manyworkers will Lackey need to add? (Hint: Each worker works160 hours per month.)
10.1. The Fizer Drug Company manufactures over-the-counter and prescription drugs. Last year the company’s cost of goods sold was $470 million. It carried average raw material inventory of $17.5 million, average work-in-process of $9.3 million, and average finished goods inventory of $6.4 million. The company operates 365 days per year. Compute the company’s inventory turns and days of supply for last year.
Andrew Manufacturing held an average inventory of $1.5 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.5 million, and its cost of goods sold was $6.2 million. The firm operates 290 days a year. What is the inventory days’ supply? What target inventory level is necessary to reach a 15- and 10-day inventory days supply during the next two years?
PT ABC logistics have operating in city ABC for 3 months, where they have 10,000 orders daily on average In the next 3 months, they are are targetting a 3x growth On average, our last mile couriers can complete deliveries based on the distribution below: Delivery Distribution Parcels/day % 100 25% 100 40% 110 20% 120 10% 130 5% If our competitor's last mile cost is USD 100/parcel, what should our target last mile productivity be? (Assume city ABC minimum income is USD 6,000)

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS

ssuming 30 days per month, calculate Hasty's monthly (1) theoretical capacity, (2) practical capacity, (3) normal apacity utilization, and (4) master-budget capacity utilization.