70.2K

Verified Solution

Link Copied!

169 Problems b. Compare your answer in part a to the answer that Jurgis would provide to the qas e.6240 x5-$312). Whan is the tlaw in lurgs's calculation of the vale of sdlitional asse time e. Suppose lurgis pays assembly workers $20.00 per hour of overtime premium. On average. wisu will be the incrementall benefit to lurgis of an hour of extra assembly timer PROBLEM 4-17. Constraints [LO 31 Fleet Valley Shoes produces twa m irmed at competitive runners) and the Mx100 (a shoe aimed at fitness bufs). Sales and costs for ehat odels: the Nx100 (a shoe the most recent year are indicased Nx100 Mx100 Sales ( pairs) Sales Variable costs Contribution margin Fised costs Profit 53,000,000 $8800,000 (200000) (1,200,000) 2.300,000 ,600,000 120,000) 1,500,001 52,280,000 $6,100,000 2 hours $37.50 547 50 Assembly time per pair Profit per assembly hour CM per assembly hour 3 hours 538.00 $38.33 REQUIRED a Suppose the company has 200,000 assembly bours available. Further, management believes that at least 4,000 pairs of each model must be produced so that the company has a presence in both market segments How many pairs of each model should be produced b Suppese management decides that ac least 6.000 pairs ofeach model must be produced. What is the opportunity cost of r this decision versus requiring only 4,000 pairs? PROBLEM 4-18. Regression Analysis Isee Appendx), Profit Equation [LO 1 and Appendix] Cindy Havana is a vice president of finance for Caplain Wesky's Restaurant, a chain of 12 restaarants on the East Coast, including five restaurants in Florida. The company is consideringa plan whereby s will be mailed coupons in the month of their birthday, entitlieg them to 20 pest olf their total bill. The cost of the mailing (printing, paper, postage, etcl Cindy estimates that the campaign will result in an annual i mal prices ($2,400,000 afier the 20 percent discousc) I ncreas As part of her analysis of the financial impact of the plan, monthly operaling costs on sales using data from the past indicated in the Summary Output tabke fsee next pape

Answer & Explanation Solved by verified expert

See Answer