50.1K

Verified Solution

Link Copied!

Oregon Industries manufactures electronic testing equipment. Oregon also installs the equipment at customers' sites and ensures that it functions smoothly. Additional information on the manufacturing and installation departments is as follows (capacities are expressed in terms of the number of units of electronic testing equipment): (Click to view the manufacturing and installation information.) (Click the icon to view additional information.) The following requirements refer only to the preceding data. There is no connection between the requirements. Read the requirements. Requirement 1. Oregon's engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $70 per unit and would allow Oregon to manufacture 27 additional unitt a year. Should Oregon implement the new method? Show your calculations. Begin by determining the formula you will use in all the requirements to make your decision. Requirements 1. Oregon's engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $70 per unit and would allow Oregon to manufacture 27 additional units a year. Should Oregon implement the new method? Show your calculations. 2. Oregon's designers have proposed a change in direct materials that would increase direct material costs by $2,600 per unit. This change would enable Oregon to install 525 units of equipment each year. If Oregon makes the change, it will implement the new design on all equipment sold. Should Oregon use the new design? Show your calculations. More info 3. A new installation technique has been developed that will enable Oregon's engineers to install 8 additional units of equipment a year. The new method will increase installation costs by $70,000 each year. Should Oregon implement the new technique? Show your calculations. 4. Oregon is considering how to motivate workers to improve their productivity (output per hour). Oregon manufactures only 375 units per year because the installation department One proposal is to evaluate and compensate workers in the manufacturing and installation has only enough capacity to install 375 units. The equipment sells for $70,000 per departments on the basis of their productivities. Do you think the new proposal is a good idea? unit (installed) and has direct material costs of $30,000. All costs other than direct Explain briefly. material costs are fixed Oregon Industries manufactures electronic testing equipment. Oregon also installs the equipment at customers' sites and ensures that it functions smoothly. Additional information on the manufacturing and installation departments is as follows (capacities are expressed in terms of the number of units of electronic testing equipment): (Click to view the manufacturing and installation information.) (Click the icon to view additional information.) The following requirements refer only to the preceding data. There is no connection between the requirements. Read the requirements. Requirement 1. Oregon's engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $70 per unit and would allow Oregon to manufacture 27 additional unitt a year. Should Oregon implement the new method? Show your calculations. Begin by determining the formula you will use in all the requirements to make your decision. Requirements 1. Oregon's engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $70 per unit and would allow Oregon to manufacture 27 additional units a year. Should Oregon implement the new method? Show your calculations. 2. Oregon's designers have proposed a change in direct materials that would increase direct material costs by $2,600 per unit. This change would enable Oregon to install 525 units of equipment each year. If Oregon makes the change, it will implement the new design on all equipment sold. Should Oregon use the new design? Show your calculations. More info 3. A new installation technique has been developed that will enable Oregon's engineers to install 8 additional units of equipment a year. The new method will increase installation costs by $70,000 each year. Should Oregon implement the new technique? Show your calculations. 4. Oregon is considering how to motivate workers to improve their productivity (output per hour). Oregon manufactures only 375 units per year because the installation department One proposal is to evaluate and compensate workers in the manufacturing and installation has only enough capacity to install 375 units. The equipment sells for $70,000 per departments on the basis of their productivities. Do you think the new proposal is a good idea? unit (installed) and has direct material costs of $30,000. All costs other than direct Explain briefly. material costs are fixed

Answer & Explanation Solved by verified expert

See Answer