Calculate annual cost of the current process

Assignment Help Operation Management
Reference no: EM132683365

Downhill Boards (DB), a producer of snow boards, is evaluating a new process for applying the finish to its snow boards. Durable Finish Company (DFC) has offered to apply the finish for $170,000 in fixed costs and a unit variable cost of $0.65. Downhill Boards currently incurs a fixed annual cost of $125,000 and has a variable cost of $0.90 per unit. Annual demand for the snow boards is 160,000.

a. Calculate the annual cost of the current process used at Downhill Boards.

b. Calculate the annual cost if Durable Finish Company applies the finish.

c. Find the indifference point for these two alternatives.

d. How much of a change in demand is needed to justify outsourcing the process?

Reference no: EM132683365

Questions Cloud

PSPTIS001 Apply codes and standards to ethical practice : PSPTIS001 Apply codes and standards to ethical practice Assignment Help and Solution, RMIT University - Assessment Writing Service
Determine what is amount of depletion that should recorded : What is the amount of depletion that should be recorded? It is estimated that the recovery of the ore will take 10 years and that after ore is fully depleted
Define why some organizations are accepting : This week's reading centered around Bitcoin Economics. Search the Internet and explain why some organizations are accepting and other organizations.
Different stages of team development : Explain group behaviour at the different stages of team development (ie forming, storming, norming and performing).
Calculate annual cost of the current process : Calculate the annual cost of the current process used at Downhill Boards. Find the indifference point for these two alternatives.
Strategy and a company business model : Read the overview below and complete the activities that follow.
Adopting environmentally-friendly business strategies : Many companies are "going green" or adopting environmentally-friendly business strategies.
Prepare plans to implement the decision : -What are some of the information needs of leaders/ managers? Provide at least 10 examples of the information they need.
Explain how much is the depreciation expense : Demonstrate how much is the 2019 depreciation expense? The truck is expected to have a $3,500 residual value and a 4-year life. Cambridge has a December 31.

Reviews

Write a Review

Operation Management Questions & Answers

  Social network promotion and public relationship costs

Facility costs Inventory costs Inbound and outbound shipping costs System costs Social network promotion and public relationship costs.

  What is the potential intended and unintended consequences

What is the potential intended and unintended consequences that different approaches to performance planning might have for staff commitment,

  Hrm problems and expatriate assignments

Determine two (2) HRM problems that typically arise with expatriate assignments. Propose two (2) precautionary steps that HR can take in order to avoid encountering these problems. Support your response with examples of such precautionary steps in ac..

  Evaluate the impact of increasing the usage of new kiosks

To do this, first draw a process flow diagram that combines the three different flows (traditional process, NEXUS program, new kiosks).

  Businesses will soon have to evaluate global environments

Do you agree that all businesses will soon have to evaluate global environments? Explain why or why not.

  Describe what are the ethics and laws within your wal-mart

In making decisions, ethical concerns need to be considered. Describe what are the ethics and laws within your Wal-Mart.

  Develop business case for implementing the technology

Choose an information technology and develop a business case for implementing the technology in your company

  Discuss your strategy for dealing with market condition

After discuss your strategy for dealing with market condition in which your company finds itself.

  Experiencing identity crisis or role confusion

Analyze a character from Shadow of the Dragon who you think is experiencing identity crisis or role confusion.

  Companies are responsible to all their stakeholders

The concept behind the triple bottom line is that companies are responsible to all their stakeholders,

  Dismantled during the current turbulent economy

Diversity and inclusion initiatives are being re-examined, reprioritized, downsized and sometimes dismantled during the current turbulent economy

  Contribute to the success of the mentoring experience

Discuss your emotional and social intelligence skills that will contribute to the success of the mentoring experience.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd