Your manufacturing company is interested in developing a cost model to price a AM part that will be manufactured for production. Based on data that they have collected: Machine and ancillaryequipment cost : $1,000,000 Equipment depreciation cost per year: $130,000 Machine Maintenance cost per year: $50,000 Machine operator cost per hour : $40/hr Set up and prep time foreach build : 30 min Post processing time per build: 1 hr Material Cost per Kg: $275/kg Amount of material needed per part: 100mgs/part They estimate the following: a. Number of parts madeper year: 60,000 b. Each build can build 200 parts simultaneously on a single platform c. Build time for each platform of 200 parts: 25 hrs d. The factory will run 24/7 for 200 days in a year.Under this scenario what will be the cost per part ?

Given information:Machine and ancillary equipment cost: $1,000,000Equipment depreciation cost per…

Answered: Your manufacturing company is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A machine project is tasked to you, as shown below. Figure 1: Garbage Collection Robot Using Wireless Communication Technology (nevonprojects.com) 1. The actual machine will be mass-produced based on the machine in Figure 1. The tooling (fixtures, moulds & dies) is estimated at RM100,000 with expected product lifespan of 10,000 sets. Material cost is RM200 per set. Administration and overhead cost are at RM250,000 per year. Production planning per month for the machine is at 300 sets. Determine the machine cost per set.
You need to select a machine for the robotized welding process at your factory. There are two machines in market that can do this job, machine A and machine B. Machine A: First cost is $63,000 , Annual Operating Cost is $4,000, and Salvage value of $15,000 with useful life of 3 years. If the life of machine B is 9 years, the NPV of machine A needed for the sake of comparison at MARR 15% per year is closest to:
Mehmet Group wants to produce the M machines used in the casting industry in the Big Industry. The planned annual production and sales amount is 20,000 units and the sales price is calculated as "cost x 1.35". Information about this investment and production is given below. What is the sales price per unit of this project? What is the present and future value of the project's profit? TABLE: Workshop building and outbuildings 1.000.000 Usd Machine facilities 4,000,000 usd Staff is 380,000 usd and increasing by 40,000 usd every year Energy 180,000 usd and increasing by 15% every year Financing expenses 750,000 usd and decreasing by 10% each year Management and sales expenses decrease by 280,000 usd and 10,000 usd every year Raw material and auxiliary material 1.700 usd per unit Operation cost is 200,000 usd each year Major repair-maintenance is 150,000 usd in the 10th year Scrap value 8,000,000 usd in the 20th year Economic life 20 years Capital cost 25%
ETS manufactures a component for its computer products. The annual demand for thiscomponent is 2500 units. The annual cost of maintaining inventory is10% per unit and the cost of preparing an order and setting up productionfor the order is $ 50.The machine used to make this part has a production rate of 10,000units per year and the cost is $ 22 per unit.a. Find the EPQ(Economic Production Quantity)A. How long does it take to produce the batch?B. How many batches will be produced per year?C. What is the maximum inventory level?D. What is the total cost per year?E. A supplier offers to sell a similar component for $ 25 per unit with a charge$ 5 per service per order. Should the company accept the offer?F. Find the average inventory level for each situation
A thermoplastic film manufacturer is trying to decide between 8 types of thermoforming molding processes to be added to its molding operation. The estimated costs and revenues are shown below. Compare them on the basis of the IRR method and determine which process should be selected if the company's MARR is 7% per year. B C D E F G Initial Costs $13,000 $12,00o $11,000 $12,500 $16,000 $26,000 $19,500 Annual expenses $6,550 $9,125 $7,000 $8,000 $7,000 $11,000 $12,000 $13,000 Annual revenue $9,000 $10,000 $9,500 $13,500 $16,000 $16,200 Lifetime(years) 9. 9 9. 9. IRR 11.54% 6.88% 9.17% 11.81% 5.24% 4.86% 6.48% Perform an IRR-incremental analysis to find the best alternative.
An automobile spare part manufacturer has set up a project for developing a new machine for one of its production lines. The engineering department has provided a project proposal that estimates the following investment requirements: ) An initial investment of RM 300,000 to be paid for purchasing the new machine. i) An additional cost is needed to install the machines and integrate it into the overall production system and it is estimated to take one (1) year for completion. There are three cost categories involved: • Engineering labor cost, estimated to be 1200 hours at a cost of RM 100/hour. • None-engineering labor cost, estimated to be 3000 hours at a cost of RM 50/hour. Assorted material cost, estimated to be RM 100,000. iv) The machine has to be overhauled every 2 year, and it costs RM 20.000 beginning the third year of the project. They will not overhaul the machine in the last year of its life. v) The production will be started in the second year, and it will be up-to-speed by…
Company XYZ is conducting an engineering economic analysis to decide whether to make vs purchase position for a necessary element needed ins several products. Now the engineering department has established this information: Option A to purchase 10,000 units annually at a fixed price of $8.50 per unit. The cost of placing the order is insignificant as per the present cost accounting procedure. Option B to manufacture 10,000 units annually with a direct labor cost of $1.50 per unit, manufacturing overhead cost is allotted at 200% of direct labor (which is $3.00 per unit) ) and Direct materials cost at $5.00 per unit. Based on the information, should the unit be purchased or manufactured?
Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost $10,000 Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Show Transcribed Text Implement your model from part (b) in Excel using the principles of good spreadsheet design and find the profit if Cox Electric makes 18,000 new product. If required, round your answer to nearest whole number. For subtractive or negative numbers use a minus sign. (Example: -300)
A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $92,000, an annual M&O cost of $31,000, and $40,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $124,000 per year. The company's MARR is 37% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is %. The manager should select robot: (Click to select) (Click to select) Y
Subject: Engineering Economy Topic: Selection in Present Economy The monthly demand for ice cans being manufactured by Mr. Cruz is 3,500 pieces. With a manually operated guillotine, the unit cutting cost is P25.00. If an automatic hydraulic guillotine at a price of P305,000 is being used he will cut by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now?
The table below shows information on the material cost, demand and production hours for parts in a cylinder head machining plant. Five parts are to be considered for an automated FMS for the plant. The parts were initially sourced from a vendor at a purchase prices given in the table below. Because of the proposed 2 shifts, the shop will be available 440 hours / month and charged at R1000 / hour. Part type Description 1 4 5 1. Purchase price (R) / unit 6000 2500 8000 2000 3000 2. Material cost (R) 600 500 100 800 900 3. Demand / month 80 70 60 50 30 4. Hours / unit 3 4. 5. Savings / unit 6. Hours / month, p 7. Savings / hour 8. Savings / month, s 9. si / pi Compute the missing values for savings/unit, Hours / month, Savings /hour, Savings / month and answer the following: 1. Savings / unit for part type 1 2. Savings / unit for part type 2 3. Savings / unit for part type 3 4. Savings / unit for part type 4 5. Savings / unit for part type 5 6. s1 / p1 7. s2 / p2 2.
Hernandez, Inc. manufactures three models of picture frames for a total of 8,000 frames per year. The unit cost to produce a metal frame follows: $ 6 8. Direct materials Direct labor Variable overhead 2 Fixed overhead (70% unavoidable) Total $21 A local company has offered to supply Hernandez the 8,000 metal frames it needs for $17 each. Instructions Create an incremental analysis for the make-or-buy decision. Show your work. What should Hernandez decide?

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