Use the following for questions 17-18. Mahomes Manufacturing has one factory in Kansas City. They have...
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Use the following for questions 17-18. Mahomes Manufacturing has one factory in Kansas City. They have capacity to produce 40,000 weight bench units a month at a cost of $20 per unit. They ship to three locations as shown in the chart below with one truckload being 100 units per truck. Their expected volume is 35,000 units. Cost/Truck Monthly Vol Lanes Dallas San Antonio Denver 1000 20000 7000 8000 1800 2500 The company is adding an additional location to optimite their network in Lubbock, Texas. That facility has a capacity of 10,000 units a month. The cost to produce in Lubbock is slightly higher at $25 per unit. Lanes Cost/ Truck Dallas 1250 San Antonio 1175 Denver 1700 17. For the description above, what is the potential cost savings per unit to produce volume in Lubbock instead of Kansas City for the Denver Volume (assuming you have capacity)? (5) a. $2.25 per unit b. $3.00 per unit e $4.00 per unit d. $5.50 per unit e. $5.00 per unit 18. If you optimize the network, what is potential savings on a monthly basis? (5) a. 45,000 b. 37,500 C. 75,750 d. 26,500 e. 12,500 Use the following for questions 17-18. Mahomes Manufacturing has one factory in Kansas City. They have capacity to produce 40,000 weight bench units a month at a cost of $20 per unit. They ship to three locations as shown in the chart below with one truckload being 100 units per truck. Their expected volume is 35,000 units. Cost/Truck Monthly Vol Lanes Dallas San Antonio Denver 1000 20000 7000 8000 1800 2500 The company is adding an additional location to optimite their network in Lubbock, Texas. That facility has a capacity of 10,000 units a month. The cost to produce in Lubbock is slightly higher at $25 per unit. Lanes Cost/ Truck Dallas 1250 San Antonio 1175 Denver 1700 17. For the description above, what is the potential cost savings per unit to produce volume in Lubbock instead of Kansas City for the Denver Volume (assuming you have capacity)? (5) a. $2.25 per unit b. $3.00 per unit e $4.00 per unit d. $5.50 per unit e. $5.00 per unit 18. If you optimize the network, what is potential savings on a monthly basis? (5) a. 45,000 b. 37,500 C. 75,750 d. 26,500 e. 12,500
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Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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