Q1. Decent Limited is a manufacturer of different electrical components. Company is operating in a highly...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q1. Decent Limited is a manufacturer of different electrical components. Company is operating in a highly competitive market. All components use same material and passes through from same production process. Since the inception company had made strong relationship with one supplier who fulfill all material requirements of the company. Both products are facing different level of competition. Component I was the first product with which company had started his business and since then many competitors have entered into the market. Therefore company is facing tough competition in this market and for last two years growth in sales are almost zero. On the other side second product which is Page 1 of 86 Assignment component 2 is launched just few years back and there are expectation that product will bring large cash flows into the business. Company has recently conducted a market survey that has shown that PED of component 1 is less than 1 and of component 2 is greater than 1. Information relating to two products are as follows • • • Component 1 5000 Expected Demand (Units) Selling Price (Rs.) 110 Direct material cost 70 per unit Time required of 1.5 Component 2 5800 70 39 0.94999999999999996 production process per unit Fixed overheads of the company was Rs.221000 Production process is the bottleneck of the company and had total capacity of 10408 hours. Requirements Calculate throughput return, and throughput accounting ratio of each product. Also interpret values that you have calculated (12) Calculate mix of production that will maximize profit of the company. Also calculate maximum profit that company can earn (04) Keeping in view product life cycle stage of each product explain management of the company what will be expected position of revenue and profitability of each product in coming year. (06) • Suggest comprehensive strategy for each product keeping in view all factors mentioned in the question and values that you have calculated. (08) Q1. Decent Limited is a manufacturer of different electrical components. Company is operating in a highly competitive market. All components use same material and passes through from same production process. Since the inception company had made strong relationship with one supplier who fulfill all material requirements of the company. Both products are facing different level of competition. Component I was the first product with which company had started his business and since then many competitors have entered into the market. Therefore company is facing tough competition in this market and for last two years growth in sales are almost zero. On the other side second product which is Page 1 of 86 Assignment component 2 is launched just few years back and there are expectation that product will bring large cash flows into the business. Company has recently conducted a market survey that has shown that PED of component 1 is less than 1 and of component 2 is greater than 1. Information relating to two products are as follows • • • Component 1 5000 Expected Demand (Units) Selling Price (Rs.) 110 Direct material cost 70 per unit Time required of 1.5 Component 2 5800 70 39 0.94999999999999996 production process per unit Fixed overheads of the company was Rs.221000 Production process is the bottleneck of the company and had total capacity of 10408 hours. Requirements Calculate throughput return, and throughput accounting ratio of each product. Also interpret values that you have calculated (12) Calculate mix of production that will maximize profit of the company. Also calculate maximum profit that company can earn (04) Keeping in view product life cycle stage of each product explain management of the company what will be expected position of revenue and profitability of each product in coming year. (06) • Suggest comprehensive strategy for each product keeping in view all factors mentioned in the question and values that you have calculated. (08) Q1. Decent Limited is a manufacturer of different electrical components. Company is operating in a highly competitive market. All components use same material and passes through from same production process. Since the inception company had made strong relationship with one supplier who fulfill all material requirements of the company. Both products are facing different level of competition. Component I was the first product with which company had started his business and since then many competitors have entered into the market. Therefore company is facing tough competition in this market and for last two years growth in sales are almost zero. On the other side second product which is Page 1 of 86 Assignment component 2 is launched just few years back and there are expectation that product will bring large cash flows into the business. Company has recently conducted a market survey that has shown that PED of component 1 is less than 1 and of component 2 is greater than 1. Information relating to two products are as follows • • • Component 1 5000 Expected Demand (Units) Selling Price (Rs.) 110 Direct material cost 70 per unit Time required of 1.5 Component 2 5800 70 39 0.94999999999999996 production process per unit Fixed overheads of the company was Rs.221000 Production process is the bottleneck of the company and had total capacity of 10408 hours. Requirements Calculate throughput return, and throughput accounting ratio of each product. Also interpret values that you have calculated (12) Calculate mix of production that will maximize profit of the company. Also calculate maximum profit that company can earn (04) Keeping in view product life cycle stage of each product explain management of the company what will be expected position of revenue and profitability of each product in coming year. (06) • Suggest comprehensive strategy for each product keeping in view all factors mentioned in the question and values that you have calculated. (08) Q1. Decent Limited is a manufacturer of different electrical components. Company is operating in a highly competitive market. All components use same material and passes through from same production process. Since the inception company had made strong relationship with one supplier who fulfill all material requirements of the company. Both products are facing different level of competition. Component I was the first product with which company had started his business and since then many competitors have entered into the market. Therefore company is facing tough competition in this market and for last two years growth in sales are almost zero. On the other side second product which is Page 1 of 86 Assignment component 2 is launched just few years back and there are expectation that product will bring large cash flows into the business. Company has recently conducted a market survey that has shown that PED of component 1 is less than 1 and of component 2 is greater than 1. Information relating to two products are as follows • • • Component 1 5000 Expected Demand (Units) Selling Price (Rs.) 110 Direct material cost 70 per unit Time required of 1.5 Component 2 5800 70 39 0.94999999999999996 production process per unit Fixed overheads of the company was Rs.221000 Production process is the bottleneck of the company and had total capacity of 10408 hours. Requirements Calculate throughput return, and throughput accounting ratio of each product. Also interpret values that you have calculated (12) Calculate mix of production that will maximize profit of the company. Also calculate maximum profit that company can earn (04) Keeping in view product life cycle stage of each product explain management of the company what will be expected position of revenue and profitability of each product in coming year. (06) • Suggest comprehensive strategy for each product keeping in view all factors mentioned in the question and values that you have calculated. (08) Q1. Decent Limited is a manufacturer of different electrical components. Company is operating in a highly competitive market. All components use same material and passes through from same production process. Since the inception company had made strong relationship with one supplier who fulfill all material requirements of the company. Both products are facing different level of competition. Component I was the first product with which company had started his business and since then many competitors have entered into the market. Therefore company is facing tough competition in this market and for last two years growth in sales are almost zero. On the other side second product which is Page 1 of 86 Assignment component 2 is launched just few years back and there are expectation that product will bring large cash flows into the business. Company has recently conducted a market survey that has shown that PED of component 1 is less than 1 and of component 2 is greater than 1. Information relating to two products are as follows • • • Component 1 5000 Expected Demand (Units) Selling Price (Rs.) 110 Direct material cost 70 per unit Time required of 1.5 Component 2 5800 70 39 0.94999999999999996 production process per unit Fixed overheads of the company was Rs.221000 Production process is the bottleneck of the company and had total capacity of 10408 hours. Requirements Calculate throughput return, and throughput accounting ratio of each product. Also interpret values that you have calculated (12) Calculate mix of production that will maximize profit of the company. Also calculate maximum profit that company can earn (04) Keeping in view product life cycle stage of each product explain management of the company what will be expected position of revenue and profitability of each product in coming year. (06) • Suggest comprehensive strategy for each product keeping in view all factors mentioned in the question and values that you have calculated. (08) Q1. Decent Limited is a manufacturer of different electrical components. Company is operating in a highly competitive market. All components use same material and passes through from same production process. Since the inception company had made strong relationship with one supplier who fulfill all material requirements of the company. Both products are facing different level of competition. Component I was the first product with which company had started his business and since then many competitors have entered into the market. Therefore company is facing tough competition in this market and for last two years growth in sales are almost zero. On the other side second product which is Page 1 of 86 Assignment component 2 is launched just few years back and there are expectation that product will bring large cash flows into the business. Company has recently conducted a market survey that has shown that PED of component 1 is less than 1 and of component 2 is greater than 1. Information relating to two products are as follows • • • Component 1 5000 Expected Demand (Units) Selling Price (Rs.) 110 Direct material cost 70 per unit Time required of 1.5 Component 2 5800 70 39 0.94999999999999996 production process per unit Fixed overheads of the company was Rs.221000 Production process is the bottleneck of the company and had total capacity of 10408 hours. Requirements Calculate throughput return, and throughput accounting ratio of each product. Also interpret values that you have calculated (12) Calculate mix of production that will maximize profit of the company. Also calculate maximum profit that company can earn (04) Keeping in view product life cycle stage of each product explain management of the company what will be expected position of revenue and profitability of each product in coming year. (06) • Suggest comprehensive strategy for each product keeping in view all factors mentioned in the question and values that you have calculated. (08)
Expert Answer:
Answer rating: 100% (QA)
Lets break down the requirements step by step 1 Calculate throughput return and throughput accounting ratio Throughput Return Selling Price Direct Material Cost Time Required per Unit Throughput Accou... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these economics questions
-
Decent Limited is a manufacturer of different electrical components. Company is operating in a highly competitive market. All components use same material and passes through from same production...
-
The Jordan Corporation is a manufacturer of heavy-duty trucks. Because of a low internal profitability rate and lack of favorable investment opportunities in the existing line of business, Jordan is...
-
The Solutions Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is two...
-
Three balls A, B, and C, with masses of 3 kg, 1 kg, and 1 kg, respectively, are connected by massless rods. The balls are located as in Figure. What are the coordinates of the center ofmass? y. m 1...
-
Explain the positive and negative adjustments to the basis of an S corporation shareholders stock investment and the basis of an S corporation debt owed to the shareholder.
-
Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed these transactions during that first month of operations. July 1 Reyna Rivera invested $80,000 cash in the...
-
Write a code to test a Gaussian pseudorandom number generator. If you do not have a canned generator available, write a generator based on the Box-Muller algorithm in Appendix I. Apply the following...
-
The following selected transactions were completed by Artic Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Jan. 2. Sold merchandise on account...
-
Discuss the business benefits of adopting the relational database model within an organization. How does a relational model create or enhance business value? Are there any limitations to using a...
-
Penny Stafford, the owner of Belvi Coffee and Tea Exchange, located in Bellevue, Washington, brought an antitrust suit against Starbucks. She alleged that through its exclusive leases, Starbucks bans...
-
20. Compute the total ordinary deductions from the community property (common) of Reyes. 21. Compute the estate tax. 22. Compute the donor's tax due on the August 17 donation. 23. Compute the donor's...
-
You are an auditor reviewing the investments of a company that uses the cost method. The company holds stock in several firms, one of which has declared bankruptcy. How would this event affect your...
-
Perform the following tasks: Read string order_name from input. Create a list containing values 'coffee' and 'berry', in that order Add a new key-value pair to grocery_record with order_name as the...
-
Using the Cox-Ross-Rubinstein Formula, calculate the price of a European call option and put option with the following parameters S(0) = 61, R = 0.05, U = .30, D = -0.10, N = 3 time steps and Strike:...
-
In what ways does globalization intersect with geopolitical tensions and conflicts, as states and non-state actors compete for influence, resources, and strategic advantages in an increasingly...
-
In what ways does contemporary research on social stratification incorporate interdisciplinary perspectives, such as sociology, economics, and political science, to develop a more comprehensive...
-
What is the idea behind the Corner Point solution approach/method? Select one: a. The best decision depends on the objective function b. The probability that the optimal solution lies at one of the...
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
The partnership of Pavelski, Ovechin, and Oh has experienced operating losses for three consecutive years. The partners, who have shared profits and losses in the ratio of Steven Pavelski, 60...
-
List at least five items that the partnership agreement should specify.
-
Best Corp. agrees to lease a store in a mall and open a coffee shop. On January 2, 2017, the company pays a non-refundable $20,000 deposit to secure the store and agrees to a lease amount of $10,000...
-
Many hotel jobs are inherently dead end; for example, maids, laundry workers, and valets, either have no great aspirations to move up, or are just using these jobs temporarily, for instance, to help...
-
Using what you learned in this chapter of Dessler Human Resource Management, build on the companys new system by recommending two more specific career development activities the hotel should...
-
Should other employees (cleaner/spotters, counter people) be put on a similar plan? Why or why not? If so, how exactly?
Study smarter with the SolutionInn App