Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,300 remotes is as follows: Cost Direct materials $ 66,950 Direct labor $ 56,650 Variable overhead $ 30,900 Fixed overhead $ 51,500 Total $ 206,000 Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income? 2. Compute the difference in cost between making and buying the remotes if $20,600 of the fixed costs can be avoided. What is the change in net income? 3. What is the change in net income if fixed cost of $20,600 can be avoided and Frannie could rent out the factory space no longer in use for $20,600?
Answers: 3
Business, 22.06.2019 05:10, srice6
1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.
Answers: 1
Business, 22.06.2019 21:20, haileymaree
1. what are the unique operational challenges to delivering fresh meals? 2. why is speed of delivery so important for delivered meals? what variety of options contribute to this performance metric? 3. how could operations management concepts be utilized to improve the performance of freshly? 4. what are your typical product delivery times? what would be required to speed these up? 5. what are your delivery batch quantities? how could you reduce batch size and reduce delivery cost simultaneously using operations management concepts?
Answers: 2
Business, 23.06.2019 01:00, itsmichaelhere1
"consists of larger societal forces that affect how a company engages and serves its customers."
Answers: 1
Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current c...
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