ECW Bhd is (ECW) looking to vaccinate all its workers and their families. The vaccination program...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ECW Bhd is (ECW) looking to vaccinate all its workers and their families. The vaccination program would also include the company's supply chain. This is necessary to ensure no "downtime" (closure of factory) during future MCOS. In all 3,000 persons will be vaccinated and the program will cost ECW RM3 million. The management has asked you for your opinion on the profitability of the program. ECW has RM40 million sales a month. Variable costs are 60% of sales figure. ECW has a fixed overhead of RM10 million monthly. It is estimated that if ECW did not do the vaccination, it will encounter downtime of 1 month in the future. Required a. Define "relevant information". b. Calculate the relevant cost of shutting the factory down for 1 month. c. Discuss your recommendation based upon b. above. need and for b) and c) ECW Bhd is (ECW) looking to vaccinate all its workers and their families. The vaccination program would also include the company's supply chain. This is necessary to ensure no "downtime" (closure of factory) during future MCOS. In all 3,000 persons will be vaccinated and the program will cost ECW RM3 million. The management has asked you for your opinion on the profitability of the program. ECW has RM40 million sales a month. Variable costs are 60% of sales figure. ECW has a fixed overhead of RM10 million monthly. It is estimated that if ECW did not do the vaccination, it will encounter downtime of 1 month in the future. Required a. Define "relevant information". b. Calculate the relevant cost of shutting the factory down for 1 month. c. Discuss your recommendation based upon b. above. need and for b) and c)
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below a Relevant information refers to data o... View the full answer
Related Book For
Transportation A Global Supply Chain Perspective
ISBN: 9781337406642
9th Edition
Authors: Robert A. Novack, Brian Gibson, Yoshinori Suzuki, John J. Coyle
Posted Date:
Students also viewed these accounting questions
-
Now that the SEC has approved a Bitcoin ETF based on CME Bitcoin Futures symbol BTIO: Do you think it is more likely or less likely that they will approve an ETF in the near future based on the spot...
-
You are the Certified Managerial Accountant (CMA) for Northwood Company. You have worked for the company for several years and your responsibilities include working with managers to analyze business...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Research about the competitive and comparative advantage of the Argentina in terms of physical and human resources and how it is making use of these resources for international trade purpose. 3....
-
Determine the reduced Boyle temperature as predicted by an equation of state (the experimentally observed value for most substances is about 2.5), using the van der Waals equation and the...
-
For the network in Figure P5.65, vs(t)=120cos377t V. Find Vo(t) vo(t) Figure P5.65
-
White Brothers manufactures conveyor belts. Early in May 2011, White Brothers constructed its own building at a materials, labor, and overhead cost of $970,000. White Brothers also paid for architect...
-
Nuke-It-Now manufactures microwave ovens. The following represents the financial information from one of its manufacturing plants for two years. Required a. Classify these items into prevention (P),...
-
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor $1.30 Indirect...
-
A process is in statistical control with x = 199 and R = 3.5. The control chart uses a sample size of n= 4. Specifications are at 200 ± 8. The quality characteristic is normally distributed....
-
Your grandparents will be celebrating their 60 th wedding anniversary in your home town. This will be an occasion for all the members of your family to get together. As their eldest grandchild, it is...
-
Aqueous hydrochloric acid reacts with aluminum metal to form aluminum chloride and hydrogen gas. If excess hydrochloric acid reacts with 0.0692 moles of aluminum, how many litres of hydrogen gas are...
-
Annual Returns of Beta-sorted Portfolios (Low to High) Macro Data year p1 p2 p3 p4 p5 mkt rf 1964 16.87 19.84 17.56 8.73 12.4 16.08 3.54 1965 8.72 6.98 15.53 24.76 49.06 14.45 3.93 1966 -9.24 -12.18...
-
If an item cost $3,000 in 2007, what would be an equivalent amount in 2010 and 2011? Use the CPI provided in the following table. Year CPI Base Year 100 2005 102.8 $0.00 2006 Round to the nearest...
-
A 0 . 4 0 0 kg mass hangs from a string with a length of 0 . 9 m , forming a conical pendulum. The period of the pendulum in a perfect circle is 1 . 4 s . What is the angle of the pendulum?
-
Can you elaborate on the theoretical and empirical evidence that supports the role of attachment styles in predicting relationship outcomes, and how might attachment theory inform therapeutic...
-
Furniture Co sells merchandise for $88,000 on January 1, 2021. The customer paid $20,000 cash and issued a note for the remainder. The principal will be due in 3 year and 4% interest is due every...
-
Consider the setup in Problem 16. Show that the relative speed of the ball and the point of contact on the stick is the same before and immediately after the collision. (This result is analogous to...
-
Bobby Cook is trying to capture the attention of Black Friday shoppers for OptiShop, a discount chain with 1,500 stores in Canada and the United States. Bobby wants to offer a tabletop 3D printer at...
-
What is cost-of-service pricing? What is the relationship between value-of-service pricing and cost-of service pricing?
-
The supply chain industry is facing a severe talent gap. What are the causes of this gap? What can companies do to acquire and retain supply chain talent?
-
Showbiz Sportswear completed the following selected transactions during 2008 and 2009: Requirements 1. Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible-Account...
-
On February 28, Tradewinds Sailing Supplies had a \(\$ 75,000\) debit balance in Accounts Receivable and a \(\$ 2,200\) credit balance in Allowance for Uncollectible Accounts. During March,...
-
At September 30, the accounts of Aguilar Outsourcing Solutions include the following: During the last quarter of 2009, Aguilar completed the following selected transactions: Requirements 1. Record...
Study smarter with the SolutionInn App