40542_03_p41-76 8/13/01 6:55 AM Page 41 C H A P T E R Product Design and Process Selection 3 B e f o r e s t u d y i n g t h i s c h a p t e r y o u s h o u l d k n o w o r‚ i f n e c e s s a r y‚ r e v i e w 1. Differences between manufacturing and service organizations‚ Chapter 1‚ pp. 4 – 6. 2. Differences between strategic and tactical decisions‚ Chapter 1‚ pp. 6 – 8. 3. Competitive priorities‚ Chapter 2‚ pp. 28 – 33. LEARNING OBJECTIVES After completing this chapter you should
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HARRINGTON COLLECTION CASE Although Harrington Collection is one of the biggest retailers of high-end women’s apparel market‚ sales and margins were the lowest level that they have ever seen. Therefore‚ creating a new product line that is active wear is one of options and also this helps to raise margin and sales. On the other hand‚ if the case examines in detail‚ it is clear that there is a dilemma since the company services high-end segment. This means that it addresses limited segment.
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UTILITIES 44-7 TECHNOLOGY & ENGINEERING 44-8 A. TECHNOLOGY 44-8 B. ENGINEERING 44-9 MANPOWER & TRAINING REQUIREMENT 44-11 A. MANPOWER REQUIREMENT 44-11 B. TRAINING REQUIREMENT 44-12 FINANCIAL ANLYSIS 44-13 A. TOTAL INITIAL INVESTMENT COST 44-13 B. PRODUCTION COST 44-14 C. FINANCIAL EVALUATION 44-14 D. ECONOMIC BENEFITS 44-15 IV. V. VI. VII. 44-3 I. SUMMARY This profile envisages the establishment of a plant for the
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would have to be sold for Waltham Motors Division to break even? Solution: Given data‚ as per exhibit1for budget‚ is as under. Total sales (TS) =$864‚000 Total Units (TU) = 18‚000 Total variable costs (TVC) = $512‚800 Total Fixed costs (TFC) = $260‚000 Let the number of motors required to be sold to breakeven = Q Then Q = Total Fixed Costs (TFC) / Contribution Margin per unit (CMU) (Equation 1) CMU = Selling price per unit (SPU) – Variable cost per unit
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tracing D) conversion costing 5) Within the relevant range‚ ifthere is achange inthe level of the cost driver‚ then: A) total fixed costs will change and total variable costs will remain the same B) total fixed costs will remain the same and total variable costs will change C) total fixed costs and total variable costs will remain thesame D) total fixed costs and total variable costs willchange Answer the following questions usingthe information below: The Singer Company manufactures several
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Managerial Accounting Overview BA 115 Management Accounting Measures‚ analyzes‚ and reports financial and non financial information non-financial that helps managers make decisions to fulfill the goals of an organization organization. Activity IFRS/IAS-based Financial Reports Generally‚ cannot be used for the day-to-day d t d goals of the managers. Financial vs Managerial Acctg MANAGERIAL Primary users Focus and emphasis Rules of measurement and reporting Level of detail Managers
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variable cost: A) average total cost is decreasing. B) average variable cost is decreasing. C) marginal cost equals average total cost. D) marginal cost is decreasing. Use the following to answer question 3: 3. Refer to the above table. The total cost of five units of output will be: A) $290. B) $320. C) $420. D) $500. 4. If average variable cost is $74 and total fixed cost is $100 at 5 units of output‚ then average total cost at this output level is:
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Civilians are innocent bystanders in war. Civilians do not change anything during total war‚ soldiers are the only people who can affect war. Civilians have no reason to be targeted during total war. These statements are false. Civilians‚ in fact‚ play a big role for a country at war. Civilians should be targeted in total war conflict. Total war has no limitations on the destruction it brings. Total war is defined as a war that is unrestricted in terms of the weapons used‚ the territory or combatants
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Introduction Danshui Plant No.2 is a contract manufacturer locating in southern China and was assembles electronic products for companies wishing to save labor costs and they are using semiskilled labor for less than 1 dollar an hour. In August 2010‚ Danshui Plant No.2 in southern China has a 1 year contract in the period between 1 June 2010 and 31 May 2011 with Apple incorporation to assemble the Apple iPhone 4. Based on the contract‚ Danshui need to assemble 2.4 million iPhones within 1 year.
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cost (cannot be eliminate) - $ 0.20 per unit Total unit (Small Fitting) - 460 000 units Make Buy Net Income Manufacturing Cost $460 000 $ 460 000 Purchase $377 200 $ (377 200) Fixed Cost Not Eliminated $ 92 000 $ (92 000) Total Annual Cost $ 460 000 $ 469 200 (9200) b) (1) What is Waterways opportunity cost if it choose to buy the small fitting and start manufacturing the timing unit? Buying price - $ 12.66 Manufacturing cost - $ 9.90 Total unit (Timing unit) - 500 units Cost of buying
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