TENG 343 EXAM 1A January 31, 2006 40 questions: each question is worth (2.5) points Given: The Green Bird Co. wants to increase their units produced. A new replacement machine costs the company extra dollars per day to lease and the production rate increases substantially per day. Also, the new equipment requires more energy per day to operate. The new machine has a better scrap 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 unit. The company uses the “Multifactor Productivity Rate” discussed in Chapter 2 to evaluate their decision, The company is paying labor at the rate of $10/hour. Related costs per day are shown below: [Deseription [ O1d Machine New Machine [Production 200 Units 400 Units Material/unit [33.00 = $2.00_ Labor/anit $4.00 [$5.00 Capital $700 = $900 om Ener; $100 $200 units (4 1. O.LOZ What is the Multifactor Productivity for the new machine in units/dollar (three decimals). unt hr . a 2. _A.0 “What is the Labor Productivity of the new machine in units/hours (two decimals). 40 . — neo OADS - (2x00) (@4OO}+ MOO O21 goliw= 2.00 — 4 oe . Given: The Bruno Co. makes one product, Part ABC. It has 3 product lines working for three (8-hour) shifts per” day per week. There are 5 days/week. Each product line is designed to produce 120 units of product per hour. Each product line requires 1 hour per shift for setup. Each product line schedules .5 hour per shift for ‘maintenance and cleanup. The factory efficiency 85%. aco drelwrec le , 3.2 2" What ii tes anticipated (actual) production of the company per week? Zine Wve, O45 fw, (20 MEL ny Wy his per beta Zlar cap 1S hw [shift erlch may ~ =% (1as)() (120) (.08) Given: The Red Bird Co. makes four final products (AB, CD, EF, GH). They have calculated that their Break Even total annual sales required is $400,000. The sales % for the products is AB = 15%, CD = 20%, EF = 35%, GH= 30%. The selling price of the products is AB = $45, CD = $35, EF = $25, and GH = $20, BSGiven: The Red Dog Company is trying to evaluate its costs. They produce only one product (sales part), part XYZ that is sold to one company, the Ajax Manufacturing Company. They seli 50,000 parts per year. They have the following costs: Cost Description T Costs in $0,000 Parte {, dollars| Yr ‘Salaries per year for persons not to be laid off | ___ 250,000 . Building mortgage per month I 8,000, fixed ‘Property taxes per quarter 400 Labor cost per part _ 9 [Material cost per part is | Vavinke (Overhead cost per part — Selling price per part LS 5. 4.9A1,l600 what is the total Fixed costs per year for the Red Dog Company? 6.81, 400,00 What is the total variable costs per year for the Red Dog Company? FC=9260,000 + (BOOOKI2) + (400% 4) = SAT WOO ve =(4 x60,00¢ } + (19% 60,000) + (4 £50,000) = (400,000 Given: Yellow Co. has a Production Rate for their three products for each week at X = 450, Y = 400, and Z= 50, ‘The Yellow Co. wants to plan its need for labor. Total labor required to produce each unit of X is 3 hours, each unit of Y is 4 hours, and each unit of Z is 5 hours. 1, BO peop Gratis the cota labor requirements in people for the first week (assume that one person is required for every 40 hours needed). x= 460 Y¥=400 2-60 ( peeson= 40, oh dar Shr Given: The Hassick Repair Co. has the capability to repair 800 trucks per month, However, due to scheduled maintenance of their equipment, management feels that they repair no more than 600 trucks. Last month the company was only able to repair 500 trucks. 8. BE3*l- _wnawas te company efficiency forthe last month one decimal. sinye BO desian= B00 etlective¥1p0,000|yn Given: The Blue Duck Co. makes three products (X, Y, Z), have fixed costs of $15,600 per month and they have the following costs for year 2005: 7 B= 16) \ 2 4 6 OO Wi heontib Product | Price | Variable | 2005 Unit v yo| Ann. | efo | Cost__| Sales e_ |! “e| ates _ Kes Wi | a $40 [835 7,000] 6% | 1a |2¢0,000 [2826 | oze4 | B $30 | S24 17,000] .80 | «2 {510,000 | .e\Z |, 1o¢0 Cc s20__| $i4 10,000 |. +2 {200,000 | .2020 | , dood 62 2 = 990,000 9, 8404 G22. (01 __ What is the break-even amount of annual sales dollars needed for the Blue Duck Co.? 5 PI - - AS 411.2 __ what is Co. profit (+) or loss (- if they sell exactly sales number of units of A, B, C. Wi W, wv seen 8 esoy Be OK gate mK Wilt) 2eh= Sy Given: A company is producing an end product Part X. Each X is made of (2) of Part A and (3) of Part B, Part A is made of (2) of Part E and one of Part F. Part B is made of (3) Part C. Part F is made of (2) Part C. 11. Draw a complete product structure for Part X. Levels ee. oO 12,400 ow many of Part B would be required on the pick list if the work order to make Part X was for a quantity of 3007 200% = 100 B