er IMSE 242 EXAMIB February 2,2001 Name Part A. Problems. Each question is worth 2 vail Given: The Green Bird Co. wants to increase their units produeSt-A new replace ine costs the company $300 per day extra to lease and the production rate increases by SOO Umtfs per day. Also, the new equipment requires more energy ($100 extra per day). The new machine has a better serap rate and therefore requires less material per unit. The new machine requires a much higher labor grade of operator and the labor costs go up per day by $200. The company uses the “Multifactor Productivity Rate” discussed in Chapter 2 to evaluate their decision. The related costs per day are as shown below: Description Old Machine ~~ New Machine — Frodution 7500 Units 3000 Units i Tabor $400 3600 | Material [Si 30fanit $1.40hinit $500 $800 ‘$100 13200 3am What isthe Productivity Rate of the New Machine (3 decimal accuracy)? fj > amuioe #24) |isi “le What is the increase (positive) or decrease (negative) in the productivity as a % (one decimal) . aed Given: The owner of the Big Bay Co. has a machine that produces 20 widgets per hour. The fixed costs are '$2,000/month, the selling price of one widget is $12, and other costs per widget include: labor $2.00, Material $3.00 and Overhead are $1.00. 293 Whatis the annual break-even dollar volume of widgets needed to sell to break-even? “1 What is the annual break-even number of widgets needed to sell to break-even? Given: The Bruno Co. has 2 product lines working for three (8-hour) shifts per day per week. There are 5 daysiweek. Each product lie is designed to produce 250 units of product per hour. Each product line requires hour per shift for maintenance and setup. The efficiency of the factory is 85. What is the design capacity of the company per week? wl. What is the effective capacity of the company per week? ‘+ (6 ‘What is the anticipated production of the company per week?Given: The Blue Sail Co, has a choice of two locations to build a plant. The fixed and variable costs for the ‘two alternative locations are given below: ark = Wan 419 COSTS_[AR [ROT ww} ene ae Fixed | $10,000 —[ $20,000 [$30,000 : Variable [S10 ___[$8___| 4 a : a _ tit Which alternative location is the lowest total cost at 3,000 units? the above data, compare only two locations (NC and AR) for problems 9, 10, 11 below. 9, 4009 GO 000}. indicate over what range of numberof units (x) alternative NC is the low-cost choice ‘Gust be exact calculated numbers and not picked off of the grid below)? «= * __NOTE: U: (x) alternative AR is the low-cost choice (iuust be exact calculated numbers and not picked off of the grid below)? 10, = 20%), Indicate over what range of number of 11, Plot the two total cost lines (x-axis units shipped and y-axis total cost in dollars) and label them NC and. AR on the grid below: $40,000 430,000 TOTAL cosr. $20,000 tooo 2000 3e00 Yoo Units SHIPPEDGiven: A service company wants to locate a new department store using 3altemative locations. They want to use the Factor-Rating Method to determine the new site based on the maximurn value and the following data: Factor Tocatlon & Toeation © (Easy acnoss 50 iT 20mm [Parking facies 30 3 70a (Display area 3 30 [Shopper traffic 70 7 927 7 ® 12. hc Using the factor ratings determine which location alternative should be chosen: g 13. t ‘What is the composite score for location A Given: Environmental Glass Products, In., wants to build a new centralized facility to receive household, commercial, and industrial glass for recycling. This center will be supplied by trucks coming from three “collection points,” where recyclable glass is dropped off by individuals and businesses. The company will use the “Center-of-Gravity Method” to decide where the new collection center would be built. The Volume and map coordinates for the four collection centers are shown below: Collection Forats Vorunae = OGY) Coordinates r a 000 Tay a) 0 on C 400 128) 14, ‘What is the x coordinate of where the collection center should be located? =~ 1s rt _What isthe coordinate of where the coleton center shold belated? a. ak Given: The Blue Duck Co, makes three produss (X,Y, Z), have fixed costs of $20,000 per quarter and they have the following costs for year 2001: “ Product | Price | Variable [2001 Uae) »!? 4 | Cost__| Forecast), 4 x 310136 3000 ae : [BT 820 [sis 6000 ee [icezeeeer |e Osne 20 aemne | SOUOUneererees| cee 1.22955 wnat isthe break-even amount of annual sales dollars needed for the Blue Duck Co.? 7 TAG. ‘What is the break-even amount of annual sales of units product A needed for the company? ast is enough to break even, and what this tells you. Will your company at forecast make a profit ss on Product A? ty Aowcash 16 tomy