Barry’s Brakes is looking to hire workers to assemble the brake assemblies it produces. Barry has estimated total output of these workers can produce, see the table below. Barry will sell each brake assembly for $200 but the parts cost $160 for each assembly. Number of Workers Total Output (per day) 1 15 2 28 3 38 4 43 The hourly wage for factory workers is $275 per day. How many workers should the factory manager hire ?

Barry’s Brakes is looking to hire workers to assemble the brake assemblies it produces. Barry has estimated total output of these workers can produce, see the table below. Barry will sell each brake assembly for $200 but the parts cost $160 for each assembly. Number of Workers Total Output (per day) 1 15 2 28 3 38 4 43 The hourly wage for factory workers is $275 per day. How many workers should the factory manager hire ?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Similar questions

Could you show me the equation and breakdown of this, that I could understand? Particulars Amount Units Produced 5,000 Total production cost 290,000 Fixed cost 30,000 Total variable cost 260,000 Variable cost per unit $52
WAI knows from historical records that approximately 40percent of its labor is used in Department 101 and 60 percentis used in Department 102. Th e reverse is true of machine time;60 percent is used in Department 101 and 40 percent is used inDepartment 102.(a) Calculate the labor and machine hours needed inDepartment 101 for each period of the MPS developed inProblem 4.(b) Calculate the labor and machine hours needed inDepartment 102 for each period of the MPS developed inProblem 4.
2.17 For the following data, calculate the number of workers required for level production and the resulting month-end inventories. Each worker can produce 14 units per day, and the desired ending inventory is 9000 units. Month Working Days Forecast Demand Planned Production Planned Inventory 11,500 1 2 3 4 Total 20 24 12 19 28,000 27,500 28,500 28,500
4b. Manufacturing What are three business strategies that can be used in a manufacturing company?
Mr Store who runs his photocopy business working8 hours per day process 100 scripts. He estimates his labour costto be €9 per hour. Also he has estimated that the total materialcost for each script is approximately €2; while the daily expensesare €28. Calculate the multifactor productivity.In an effort to increase the rate of the photocopy process to 150 scripts, he decides to change the quality of ink thus raising the mate-rial cost to €2.5 per day. Is the new productivity better than before? If Mr Store would like to increase the photocopy process to150 scripts without sacrificing the initial multifactor productivity,by what amount has the material costs to be increased?
Enumerate and define the 4Ms of production in your own words. 1. Methods 2. Manpower 3. Machine 4. Materials
4. C&A uses two steps to make a toy. Step 1 takes 20 seconds. Step 2 takes 15 seconds. Each step is staffed by one worker, for a total of two workers. Each worker is paid $15 per hour. Each toy is sold for $20. Material costs are $5 per toy and fixed costs are $500 per hour. Assume demand is unlimited. Answer the following questions. a. How much profit does C&A make per hour? b. What will be the impact on C&A's profit per hour if the processing time of step 2 is reduced to 10 seconds? c. Demand rate is 120 toys per hour. How much profit does C&A make per hour? Assume the worker's pay is a variable cost. 5. You are a manager of CircuitTown, which sells Xbox2010. The demand for Xbox2010 in the holiday season is 200 units with probability 0.8 and 400 units with probability 0.2. You have to take an order from MSFT in advance. You can either purchase 200 units or 400 units. The purchase price is $150 per unit and the retail price is $300 per unit. After the holiday, you dump unsold units to…
Heath Production manufactures chairs. Several weeks ago, the company received an inquiry from Rose Limited. Rose wants to market a foldable chair similar to one of Heath’s and has offered to purchase 12 000 units if the offer can be completed in three months. The cost data for Heath’s foldable chair is as follow: Direct material $16.40 Direct labour (0.125 @ $36 per hour) 4.50 Total manufacturing overhead 20.00 Total $40.90 The normal selling price of Heath’s foldable chair is $51.00. However, Rose has offered Heath only $31.50 because of the large quantity it is willing to purchase. Rose requires a modification of the design that will allow a $4.20 reduction in direct material cost. The production manager of Heath notes that the company will incur $8400 in additional setup costs and will have to purchase $5800 special equipment to…
So and Ralph have joined forces to start SoRap Chip Products, a processor of packaged okra chips.So has years of food processing experience, and Ralph has extensive commercial food preparationexperience. Together with the help from vendors, they can adequately estimate demand, fixed costs,revenues, and variable cost per 5-pound bag of okra. They think a largely manual process will havemonthly fixed cost of 37,500Php and variable cost of 1.75Php per 5-pound bag. A more mechanizedprocess will have fixed costs of 75,000Php per month with variable costs of 1.25Php per 5-poundbag. They expect to sell the okra chips for 2.50Php per 5-pound bag. What is the break-even quantityfor the manual process?
Cranston Company estimates the following overhead costs for the coming year: Equipment depreciation $160,000Equipment maintenance 60,000Supervisory salaries 40,000Factory rent 100,000Total $360,000 Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year.(a) Calculate the predetermined overhead rate using direct labor costs as the allocation base. (b) Calculate the predetermined overhead rate using machine hours as the allocation base.
#3 - At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $400 per unit and it takes place in a facility that has a monthly fixed cost of $200,000. a. If Freeze Inc. sells each unit at $1,200 how many units do they need to sell every month to break-even? b. What is the monthly revenue at the break-even point? с. What is the monthly variable cost at the break-even point? d. What is the total operating cost at the break-even point? e. If Freeze Inc. sells 1,000 units at $1,000 each on a given month, calculate the profit. acer
Various financial data for SunPath Manufacturing for 2019 and 2020 follow. Output: Sales Inputs: Labor Raw Materials Energy Capital Employed Other Multiple Choice What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2019 and 2020? O O 10.39 -0.53 -2.88 2.33 2019 2020 $300,000 $330,000 43,000 51,000 9,000 262,000 6,000 -9.22 40,000 45,000 10,000 250,000 2,000