You work for the Brad's Nailer Company which manufactures two types of nailers: a pneumatic model and a cordless model. You have contracted to supply a national retail chain with both pneumatic nailers and cordless nailers. However, Brad's nailer production capability is limited in three departments: production, testing, and packaging. Your answer will be the production costs needed to execute your production plan - rounded to the nearest whole dollar. (The number of nailers may not be a whole number, which is acceptable in this chapter.) Use Scenario 3

You work for the Brad's Nailer Company which manufactures two types of nailers: a pneumatic model and a cordless model. You have contracted to supply a national retail chain with both pneumatic nailers and cordless nailers. However, Brad's nailer production capability is limited in three departments: production, testing, and packaging. Your answer will be the production costs needed to execute your production plan - rounded to the nearest whole dollar. (The number of nailers may not be a whole number, which is acceptable in this chapter.) Use Scenario 3

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

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

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

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue Soft Drink $1.20 $0.70 24 Wine $2.00 $1.00 26 Coffee $1.00 $0.35 30 Candy $0.75 $0.30 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 3 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in…
As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue Soft Drink $1.00 S0.70 25 Wine $2.00 $0.95 25 Coffee $1.25 $0.30 30 Candy $1.20 $0.30 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $280.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $280.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $60.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for wine = servings…
Titan fitness makes barbells for crossfitters and wants to determine its break-even point. The total fixed cost for this business is $10000 and the variable cost is $100 per barbell. Titan fitness sells the barbell for $250 per unit. What is the break-even quantity? (Only enter a number, do not enter any units. Round your answer to the nearest whole number.
Inventory Management You are the store manager at a local branch of DigiLife, a large electronics retail chain. A new version of a popular consumer electronics device called the Amulet is coming out this year. It is your job to sell as many Amulets as you can while minimizing your costs in order to maximize your store's profits. Your Goal Earn $1,000,000 in net profits of Amulet sales.
As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue $0.65 $0.95 $0.75 $0.30 Soft Drink $2.00 25 $2.75 $2.00 $1.00 Wine 25 Coffee 30 Candy 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $ (round your response to two decimal places).
Suppose you are the controller of a microchip manufacturer that uses a highly automated production process. Choose a volume-based cost driver upon which to base the application of overhead.
What is the initial BF solution?
is used to calculate the minimum level of output a business will need to produce and sell to cover its costs and to examine the impact that changes in costs, prices and sales could have on profits. O Total revenue 8 9 O Total cost Loss Break-even analysis-