Company is producing transmission handle of 200,000 units per day working 6 days in a week.
management
Description
1. Company is producing transmission handle of
200,000 units per day working 6 days in a week. The effective capacity is
173,256 units per day but the actual output is 165,587 units per day. Compute
the design capacity per week, utilization per month and efficiency per day.
What if the efficiency is 78.5%, what is the expected output in a day? Explain
the efficiency result per day. (12 points)
2. Company wants to determine the minimum $ volume
and unit volume needed at its new facility to break-even. Shown below is the
Income Statement of Company for the month of September. They produced 40,000
units for this month. (15 points)
Company
Income Statement
For the month ended
September 30, 2018
Sales
$4,000,000
Less:
Variable
Costs
$1,600,000
Fixed
Costs
900,000 2,500,000
Net Income
$1,500,000
Compute the following:
1.
Break-Even Point in
Sales
2.
Break-Even Point in
Units
3. Company has a plant for meat processing. The
factory can produce 4,700 packs per day. The effective capacity is 4,300. The
actual output is 4,076 packs. The factory has 5 production lines which operate
6 days per week (6th day is half-day), with one 8-hour shift
per day. Compute for the following: (12 points)
·
Design Capacity in a
month
·
Efficiency per day
·
Utilization per week
and month
·
Evaluate and explain
the results of the Utilization per month
