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Author Question: Venlaz Corp makes small motorcycles. The monthly demand ranges from 80 to 100 motorcycles. The ... (Read 66 times)

sc00by25

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on: Mar 6, 2021
Venlaz Corp makes small motorcycles. The monthly demand ranges from 80 to 100 motorcycles. The average demand is 92 motorcycles. The plant operates 300 hours a month. Each cycle takes approximately 1.5 hours. 

If the company adds a new line of scooters, initial demand will be 20 per month. Each scooter will take 1 hour to make. To offset approaching production capacity, expanding the assembly line is possible. This will decrease manufacturing time for all products by 20%. However, this will increase the costs of cycles from $400 to $500 and scooters from $200 to $240. The change will also cause increases in prices from $700 to $750 for cycles and from $450 to $500 for scooters. 

Required:
a.  What is the average waiting time for cycles if they are the only item manufactured? 

b.  What are the average waiting times if both cycles and scooters are produced and the assembly line is not enlarged? 

c.  What are the average waiting times if both cycles and scooters are produced and the assembly line is enlarged? 

d.  What is the expected monthly margin without scooters if the company sells all 92 cycles it manufactures? 

e.  What are the expected monthly contribution margins if scooters are made with the current assembly line and with the new assembly line? Assume average sales and that sales equal production. 

f.  What action do you recommend?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by sc00by25 on Mar 6, 2021

dlook33

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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sc00by25

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Reply 2 on: Mar 6, 2021
:D TYSM

peter

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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