Question: How can I solve these problem solving questions? CAPCITY BREAKEVEN EXPECTED MONETARY VAL CAPACITY Case: Sara James Bakery has a plant for processing Deluxe breakfast
How can I solve these problem solving questions?
CAPCITY BREAKEVEN EXPECTED MONETARY VAL CAPACITY Case: Sara James Bakery has a plant for processing Deluxe breakfast rolls and wants to better understand its capability. Last week, the facility produced 148,000 rolls. The effective capacity is 175,000 rolls. The production line operates seven (7) days per week, with three (3) eight-hour shifts per day. The line was designed to process the nut-filled, cinnamon-flavored Deluxe roll at a rate of 1,200 per hour. Determine the design capacity, utilization, and efficiency for this plant when producing this Deluxe roll. CAPCITY BREAKEVEN EXPECTED MONETARY VALUE NET PRE BREAK-EVEN ANALYSIS Break-even analysis point in units Break-even analysis point in peso Price per unit (after all discounts) Number of units produced Total revenue (also Px) Fixed Costs Variable Costs per unit Total Costs Single-Product Case: Stephens, Inc. has determined that their new facility has fixed costs of P50,000 this period. The direct laboris P7.50 per unit, the material is P3.75 per unit, and the selling price is $20.00 per unit. Determine the minimum peso volume and unit volume needed at the new facility to break even. Multiproduct Case: Le Bistro, like most other restaurants, makes more than one (1) product and would like to know its break-even point in peso. Fixed costs are P45,000 per month Price Variable Cost Item Sandwich Drinks Baked Potato Annual Forecasted Sales Units 9000 9000 7000 100 SO 60 60 15 30 0,6 0.3 0.5 0,4 0.7 0.5 Annual Forecasted Sales 900,000 450,000 420,000 1.770,000 % of Sales (WT) 0,50847458 0.25423729 0.23728814 0.203389831 0.177966102 0.118644068 0.5 3461.538462 CAPCITY BREAKEVEN EXPECTED MONETARY VALUE NET PF Expected Monetary Value Case: EMV applied to Southern Hospital Supplies Southern Hospital Supplies, a company that makes hospital gowns, is considering capacity expansion. The hospital's major alternatives are to do nothing, build a small plant, build a medium plant, or build a large plant. The new facility would produce a new type of gown, and currently the potential or marketability for this product is unknown. If a large plant is built and a favorable market exists, a profit of P100,000 could be realized. An unfavorable market would yield a P90,000 loss. However, a medium plant would earn a P60,000 profit with a favorable market. A P10,000 loss would result from an unfavorable market. A small plant, on the other hand, would return P40,000 with favorable marketconditions and lose only P5,000 in an unfavorable market. Of course, there is always the option of doing nothing Recent market research indicates that there is a 4 probability of a favorable market, which means that there is also a 6 probability of an unfavorable market. With this information, the alternative that will result in the highest expected monetary value (EMV) can be selected. CAPCITY BREAKEVEN EXPECTED MONETARY VALUE NET PRESENT VALUE Future Value Present Value You have the choice of being paid $2,000 today Interest Rate carning 3% annually or $2,200 five years from Number of Years now Project X requires an initial investment of $35.000 but is expected to generate revenues of 510,000, $27.000, and $19.000 for the first second, and third years, respectively. The target rate of return is 12%. Since the cash inflows are uneven, the NPV formula is broken out by individual cash flows. NPV - Today's value of the expected cash flows - Today's value of invested cash 1897.7393 Start date 1st year 2nd year 3rd year -35,000 10,000 27,000 19,000 NPV -3500 8928,5714 21524235 13523.825 8976,6308