Question: Forecasting resource capacity using a time-driven ABC system Refer to the time-driven ABC analysis of forecasting resource capacity for the Madison Dairy ice cream plant

Forecasting resource capacity using a time-driven ABC system Refer to the time-driven ABC analysis of forecasting resource capacity for the Madison Dairy ice cream plant example on pages 181??184 of this chapter. Suppose that all the information is the same except for the following:(a) Assuming that only full-time employees can be hired, determine the number of production employees required to meet this production plan. Also, determine the number of machines required for this production plan.(b) Prepare a pro forma monthly product line income statement similar to that shown in Exhibit 5-7.(c) What are the company??s gross profit and the ratio of gross profit to sales after incorporating the cost of unused capacity?

MOCHA-ALMOND VANILLA LATE STRAWBEKRY AL 15,500 Sales volume (gallons) 13,000 16 1,600 4 31,300 41 1,200 3. # production runs 18

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a With the stated change Madison Dairy will require 8 fulltime production employees and 3 machines as shown below Labor Vanilla Chocolate Straw berry ... View full answer

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