OM1.Please answer fast Given the following information: You know it costs $10 to make a single unitusing regular production and $15 to make a single unit using overtimeproduction. You know that finished units sell for $20 and are built to order. Youalso know the manufacturing plant has a regular production capacity of 250units per month and no inventory at the start of the planning period. Using thesales projections from the table below, what is the BEST net cash flow for theentire planning period if the manufacturer uses a chase plan?MONTH FORECASTJanuaryFebruaryMarchApril$12,500$11,500$23,000$10,500250200300400

Given data: Single unit Regular production cost =$10Single unit overtime production cos =$15…

Answered: Given the following information: You…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Mary Jones and Jack Smart have joined forces to start M&J Food Products, a processor of packaged shredded lettuce for institutional use. Jack has years of food processing experience, and Mary has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think a largely manual process will have monthly fixed cost of $50,000 and a variable cost of $2.50 per bag. They expect to sell 75,000 bags of lettuce per month. They expect to sell the shredded lettuce for $3.25 per 5-pound bag. Jack and Mary has been contacted by a vendor to consider a more mechanized process. This new process will have monthly fixed cost of $125,000 per month with a variable cost of $1.75 per bag. Based on the above…
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