George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of hisorganization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and anequivalent month this year:Last YearNowCost Per Input UnitUnits Produced1,2001,200Labor (hours)300275$12 per hourResin (pounds)Capital Invested ($)Energy (BTU)4810,0002,9004311,0002,750$5 per pound2% per month$0.60 per BTUThe percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator = ☐ % (enter your response as a percentagerounded to two decimal places).

Given: The input and output of a month in the last year and now: Last year Now Cost per unit…

Answered: George Kyparisis makes bowling balls in…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Part 2 Last Year Now Cost Per Input Unit Units Produced 1,200 1,200 Labor (hours) 300 275 $ 12 per hour Resin (pounds) 48 43 $ 6 per pound Capital Invested ($) 9,000 10,000 1% per month Energy (BTU) 3,000 2,850 $ 0.60 per BTU Part 3 The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator =…
CleanTech manufactures equipment to mitigate the environmental effects of waste. (a) If Product A has fixed expenses of $15,000 per year and each unit of product has a $0.20 variable cost, and Product B has fixed expenses of $5000 per year and a $0.50 variable cost, at what number of units of annual production will A have the same overall cost as B? (b) As a manager at CleanTech what other data would you need to evaluate these two products?
Learning Curves Hat Tricks Company (HTC) is a Buffalo, New York, manufacturer of hats andgloves. Recently, the company purchased a new machine to aid in producing the hat product lines.Production efficiency on the new machine increases with the workforce experience. It has beenshown that as cumulative output on the new machine increases, average labor time per unit decreasesup to the production of at least 3,200 units. As HTC’s cumulative output doubles from a base of 100units produced, the cumulative average labor time per unit declines by a learning rate of 80%.HTC has developed a new style of men’s hat to be produced on the new machine. One hundredof these hats can be produced in a total of 40 labor hours. All other direct costs to produce eachhat are $12 per hat, excluding direct labor cost. Direct labor cost per hour is $25. Fixed costs are$8,000 per month, and HTC has the capacity to produce 3,200 hats per month.Required HTC plans to set the selling price for the new men’s hat at…
The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per unit for the firms leading product over the past eight years: a. Construct a time series plot. What type of pattern exists in the data? b. Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. c. What is the average cost increase that the firm has been realizing per year? d. Compute an estimate of the cost/unit for next year.
Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:
Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x1 20x2 Output 184,500 217,000 Power (quantity used) 23,063 11,000 Materials (quantity used) 46,125 47,100 Suppose the following input prices are provided for each year: 20x1 20x2 Unit price (power) $ 6 $ 7 Unit price (materials) 20 19 Unit selling price 8 10 Required: 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest…
Colby Company manufactures digital thermometers. Based on past experience, Colby has found that its total maintenance costs can be represented by the following formula: Maintenance cost = 30, 000 + 0.5 X, where X = Number of digital thermometers Last year, Colby produced 100,000 thermometers. What is the total variable maintenance cost incurred by Colby last year? a) $50,000 b) $80,000 c) $84,000 d) $30,000
Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company's profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them. Waterways markets a simple water control and timer that it mass-produces, Last year, the company sold 630,000 units at an average unit selling price of $4.40. The variable costs were $1,663,200, and the fixed costs were $742,896. Show Transcribed Text Margin of safety in dollars What is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal places, e.g. 25%.) Margin of safety ratio 3 $ Ć %
Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 20 hours per day making the 200 boxes. a) Their productivity = boxes/hour (round your response to two decimal places). Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 400 boxes per day. b) Their new productivity c) The unit increase in productivity is boxes/hour (round your response to two decimal places). d) The percentage increase in productivity is % (enter your response as a percentage rounded to two decimal places). = boxes/hour (round your response to two decimal places).
Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company's profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them. Waterways markets a simple water control and timer that it mass-produces. Last year, the company sold 735,000 units at an average unit selling price of $3.60. The variable costs were $1,852,200, and the fixed costs were $508,032.
Log Cabins Unlimited constructs vacation houses in the North Carolina mountains. The company has developed the following value chart: a. How much of the total time is value-added time? ______ hours b. How much total time is spent performing non-value-added activities? ______ hours c. Calculate the manufacturing cycle efficiency of the process. Note: Round the percentage to one decimal point (i.e. show 14.445% as 14.4%). ______%
As the newly appointed Controller of Lynbrook, Inc. you have been asked to evaluate several scenarios that management is considering to improve the overall profitability of the company. Lynbrook manufactures and sells a product called a Wren, its only product. The company normally produces and sells 60,000 Wrens each year at a selling price of $32 per unit. The company's unit costs at this level of activity are included below: Direct materials $10.00 Direct labor 4.50 Variable manufacturing 2.30 overhead Fixed manufacturing overhead 5.00 ($300,000 total) Variable selling expenses 1.20 Fixed selling expenses 3.50 ($210,000 total) Total cost per unit $26.50 The CFO of Lynbrook would like your response to the following three (3) independent situations to present to the management team early next week. Situation #1 Assume that Lynbrook has sufficient capacity to produce 90,000 Wrens each year without any increase in fixed manufacturing overhead costs. The company could increase its unit…

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