Business, 03.04.2020 20:52 madeleine1102

Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1300 Beginning inventory 200 units 2 1400 Stock-out cost $50 per unit 3 1500 Inventory holding cost $10 per unit at end of quarter 4 1300 Hiring workers $4 per unit Laying off workers $8 per unit Unit cost $30 per unit Overtime $10 extra per unit What is the cost of the following plans: a. Plan A—chase demand by hiring and layoffs. Cost = $ b. Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime. Cost = c. What plan would you choose?

Answers: 1

Show answers

Answers

Answer from: lukeakalucas

The question is about the plan that needs to be implemented.

Demand for quarter 1 is 1300 and 200 units is in beginning stock so a production of 1100 units will be required.

In the 2nd quarter a production of 1400 units, 1500 units will be produced in the 3rd quarter and 1300 units will need to be produced in the 4th quarter in order to meet the demand.

The cost will be incurred accordingly and then the plan with the lowest cost will be selected in order to increase profitability.

The lowest cost in incurred in Plan A and therefore Plan A will be chosen and implemented.

Learn more at link

Answer from: probablyacommunist

Plan A - chase demand by hiring and layoffs will be chosen.

Explanation:

Since this is a chase plan, there is no scope of the stockout and the overtime is also not planned. the following is used to choose the plan.

Qty Demand Production Hire Fire Ending inventory

1500 200

1 1400 1200 0 300 0

2 1200 1200 0 0 0

3 1500 1500 300 0 0

4 1300 1300 0 200 0

Total 5200 300 500 0

Marginal cost $30 $4 $8 $10

Cost $156,000 $1,200 $4,000 $0

$161,200

Answer from: Quest

answer; blank (1) hrm specialists,blank(2); line managers;

Answer from: Quest

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself

Other questions on the subject: Business

Business, 22.06.2019 11:20, greatsavagebeast

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Answers: 3

continue

Business, 22.06.2019 13:20, sailesd57

Last year, johnson mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. the firm paid $700 in dividends and had a tax rate of 35 percent. the firm added $2,810 to retained earnings. the firm had no long-term debt. what was the depreciation expense?

Answers: 2

continue

Business, 22.06.2019 18:20, fantasticratz2

Principals are an administration career

Answers: 2

continue

Business, 22.06.2019 21:10, dezmondpowell

Skychefs, inc. prepares in-flight meals for a number of major airlines. one of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. during the most recent week, the company prepared 4000 of these meals using 960 direct labor hours. the company paid these direct labor workers a total of $19,200 for this work, or $20.00 per hour. according to standard cost card for this meal, it should require 0.25 direct labour-hours at a cost of $19.75 per hour.1. what is the standard labor-hours allowed (sh) to prepare 4,000 meals? 2. what is the standard labor cost allowed (sh x sr) to prepare 4,000 meals? 3. what is the labor spending variance? 4. what is the labor rate variance and the labor efficiency variance?

Answers: 3

continue

You know the right answer?

Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming fo...