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b. XYZ company produces staplers and other items. The production cost per unit is $8 and the cost of setting up the production line for this is $60. The annual holding cost rate is 30%. The company works 250 days per year. The production rate for this product is 120 per day. If the annual demand is 20,000 units,
iii. What is the total production time allocated to this product annually?
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- The fixed costs within a machine shop are $3.4M annually. The main product this shop produces is priced at $15.00 per unit. Costs for material and labor are $6.50 per unit. What is the annual profit (or loss) if 300,000 units are sold?Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What is the optimal total cycle time including the production time in year?solve i, ii and iii please. Suppose the demand of a product produced by a production firm is 8000 per year (1 year = 312 days) and it occurs at a constant rate. The production rate of the product per year is 10000. The set up cost of setting a machine for the production of the product is 600 Taka. The selling price per unit of the product is 1000 Taka. The inventory holding cost per unit per year is calculated as 5% of the selling price per unit. Assuming selling of the product starts from the outset of production and there is no occurrence of shortages of the product, b) Let the cost of inspection is given by 30Q, where $30 is the cost per unit of inspection and the cost of passing defectives is estimated as 12000/Q. i. Find the optimal amount of inspection that minimizes the associated total cost. ii. Find the associated minimal total cost. iii.Find the total costs at Q = 16 and Q = 24 and highlight their relationship with the cost of optimal quantity of inspection.
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- A local manufacturer produces a single product that has a selling price of $25.00 per unit. Fixed expenses total $50,000 per year, and the company must sell 10,000 units to break even. If the company has a target profit of $15,000, how many units must be sold?A certain factory produces 2000 Ton per year of its product. Th price of one kilogram is 1.8$. The annual direct production cost is 2million $ when the factory works at its whole capacity. Other fixed costs are 7X10^5 b) If the selling price increases by 10% calculate the increase in the net profit at the whole capacity assuming the taxes are 48% of the gross profit.1. Party Co. produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts are: Variable manufacturing cost, P12.00; fixed manufacturing cost, P9.00. The part can be purchased from an outside supplier at P20.00. If the part is purchased from the outside supplier, two thirds of the fixed manufacturing costs can be eliminated. What would be the annual impact on the company’s net operating income as a result of buying the part from the outside supplier? 2.Division A produces a part that it sells to outside customers. Data concerning this part follows: Selling price to outside customers, P60; Variable cost per unit, P40; Total fixed costs, P100,000; Capacity in units, 20,000 units. Division B of the same company purchases 5,000 units of similar part from an outside supplier at a price of P58 per unit. If Division B wants to purchase 5,000 units from Division A instead, and Division A has no idle capacity, what should be the…