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in to edit and save changes to thi... Chapter 5 Strategic Capacity Planning for Products & Services Chapter 6 Process Selection and Facility Layout Homework Assignment for 15 points 15 points due by 11.59 pm April 5 (Monday). Note: You can team up with one of your classmates to complete the assignment (not more than two in a team); if you want to work on the assignment individually, that's also fine. If you are working in teams, then only one submission is required per team; include both the team members' last names as part of the assignment submission file name as well as in the assignment submission document. Please provide detailed solutions to the following problems/exercises (3 problems/exercises x 5 points each) 1) A production manager at The Bama Companies is trying to determine which of three production processes to implement to produce a new product line of buttermilk biscuits. Process A would entail a variable cost of $17 per unit and an annual fixed cost of $150,000. Process B would entail a variable cost of $11 per unit and an annual fixed cost of $250,000. Process C would entail a variable cost of $20 per unit and an annual fixed cost of $180,000. a) Develop three separate models in a spreadsheet (use the given excel template, the solved excel sheet is your solution for this problem) to calculate the total cost for each process. The models must be flexible and able to calculate total cost for any quantity produced. b) Create a cost-volume graph that shows total cost lines for all three options (use a volume of 1,000 units). c) Interpret the cost-volume graphs. 2) The Bama Companies produces buttermilk biscuits besides other products. Each buttermilk biscuit has a variable cost of eighty five cents, the firm sells each buttermilk biscuit for one dollar and thirty five cents. Bama's current volume of production is sixty thousand buttermilk biscuits, the firm incurs fixed costs of thirteen thousand dollars. Bama is planning to expand its production facilities by adding automation equipment; this production expansion will result in the firm incurring additional fixed costs of six thousand dollars, the variable costs incurred would now be ninety five cents per buttermilk biscuit. Bama anticipates that this production expansion would enable them to increase their volume of production to eighty thousand units. a) Should Bama expand its production facilities by adding automation equipment (provide detailed calculations for both options: Option 1 - with current equipment, and Option 2 - with adding automation equipment)? b) What is Bama's break-even points in terms of $ and units (provide detailed calculations for both options: Option 1 - with current equipment, and Option 2 - with adding automation equipment)? 3) Mayday Manufacturing wants to establish an assembly line to manufacture its new product, a complex closed-tolerance aircraft component. The firm plans to produce five components per hour. The tasks, task times, and immediate predecessors for producing one component are as follows: Immediate Predecessors Task A B C D E F Time (minutes) 10 12 8 6 6 6 A AB B, C DE Read Only - You can't save changes to ... v fx Volume (optional) B D E F G . 1 J K L 1 Cost-volume analysis 2 3 Cost-volume analysis 4 1 Enter the fixed and variable costs for the options in the data area. You may enter a volume at which to perform a volume analysis. 0.9 5 6 7 0.8 0.7 8 Data 9 A 0.6 10 0.5 Fixed cost Variable cost 11 0.4 12 0.3 13 Volume lontional) 0 0.2 14 15 0.1 0 16 17 Results Breakeven points A vs. B A vs. C B vs. 0 0.2 0.4 0.6 0.8 1 Units #DIV/0! #DIV/0! #DIV/0! Dollars #DIV/0! #DIV/0! #DIV/01 18 Units 19 20 -A-B-C A B Volume analysis @ units Total Cost 0 0 0 21 22 23 24 25 26 27 28 29 CV Graph Units A 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/01 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 in to edit and save changes to thi... Chapter 5 Strategic Capacity Planning for Products & Services Chapter 6 Process Selection and Facility Layout Homework Assignment for 15 points 15 points due by 11.59 pm April 5 (Monday). Note: You can team up with one of your classmates to complete the assignment (not more than two in a team); if you want to work on the assignment individually, that's also fine. If you are working in teams, then only one submission is required per team; include both the team members' last names as part of the assignment submission file name as well as in the assignment submission document. Please provide detailed solutions to the following problems/exercises (3 problems/exercises x 5 points each) 1) A production manager at The Bama Companies is trying to determine which of three production processes to implement to produce a new product line of buttermilk biscuits. Process A would entail a variable cost of $17 per unit and an annual fixed cost of $150,000. Process B would entail a variable cost of $11 per unit and an annual fixed cost of $250,000. Process C would entail a variable cost of $20 per unit and an annual fixed cost of $180,000. a) Develop three separate models in a spreadsheet (use the given excel template, the solved excel sheet is your solution for this problem) to calculate the total cost for each process. The models must be flexible and able to calculate total cost for any quantity produced. b) Create a cost-volume graph that shows total cost lines for all three options (use a volume of 1,000 units). c) Interpret the cost-volume graphs. 2) The Bama Companies produces buttermilk biscuits besides other products. Each buttermilk biscuit has a variable cost of eighty five cents, the firm sells each buttermilk biscuit for one dollar and thirty five cents. Bama's current volume of production is sixty thousand buttermilk biscuits, the firm incurs fixed costs of thirteen thousand dollars. Bama is planning to expand its production facilities by adding automation equipment; this production expansion will result in the firm incurring additional fixed costs of six thousand dollars, the variable costs incurred would now be ninety five cents per buttermilk biscuit. Bama anticipates that this production expansion would enable them to increase their volume of production to eighty thousand units. a) Should Bama expand its production facilities by adding automation equipment (provide detailed calculations for both options: Option 1 - with current equipment, and Option 2 - with adding automation equipment)? b) What is Bama's break-even points in terms of $ and units (provide detailed calculations for both options: Option 1 - with current equipment, and Option 2 - with adding automation equipment)? 3) Mayday Manufacturing wants to establish an assembly line to manufacture its new product, a complex closed-tolerance aircraft component. The firm plans to produce five components per hour. The tasks, task times, and immediate predecessors for producing one component are as follows: Immediate Predecessors Task A B C D E F Time (minutes) 10 12 8 6 6 6 A AB B, C DE Read Only - You can't save changes to ... v fx Volume (optional) B D E F G . 1 J K L 1 Cost-volume analysis 2 3 Cost-volume analysis 4 1 Enter the fixed and variable costs for the options in the data area. You may enter a volume at which to perform a volume analysis. 0.9 5 6 7 0.8 0.7 8 Data 9 A 0.6 10 0.5 Fixed cost Variable cost 11 0.4 12 0.3 13 Volume lontional) 0 0.2 14 15 0.1 0 16 17 Results Breakeven points A vs. B A vs. C B vs. 0 0.2 0.4 0.6 0.8 1 Units #DIV/0! #DIV/0! #DIV/0! Dollars #DIV/0! #DIV/0! #DIV/01 18 Units 19 20 -A-B-C A B Volume analysis @ units Total Cost 0 0 0 21 22 23 24 25 26 27 28 29 CV Graph Units A 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/01 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62