Question 1: Sean Company has been operating for 5 years producing irons. In the month of August,
Question:
Question 1: Sean Company has been operating for 5 years producing irons. In the month of August, they have sold a total of 250,300 irons. For the month of September, their target sales is to sell 350,000 irons by the end of the month where 45% of their months production will be carried over to the next month. There are 155,000 finished irons in inventory. Based on an anticipated 10% monthly growth rate by the company, prepare the production requirement in units of finished product for the next four months.
Question 2: Proon Company, who specializes in producing clothing, knows well that a business must earn enough to pay for all costs and still keep itself in an adequate state of liquidity. They also know that profit is an essential cost of any business activity. It must be planned and managed just like other costs of doing business. Based on thief profit plan, the company expects to make $250,000 in January in T-shit sales, $300,000 in February and $340,000 in March in sales. Based on the expectation cash collection of the treasury manager, the company expected to receive at least 45% of the amount in the month of sale, 35% in the month following sale, and 20% in the second month following sale. Based on your evaluation, determine whether the collection targets are correct. Based on your evaluation, present your recommendations to the company.
Process Dynamics and Control
ISBN: 978-1119385561
4th edition
Authors: Dale E. Seborg, Thomas F. Edgar, Duncan A. Mellichamp, Francis J. Doyle