Determine hernandez optimal shipping quantities

Assignment Help Managerial Accounting
Reference no: EM133010869

Marc Hernandez's construction firm currently has three projects in progress. Each requires a specific supply of gravel. There are three gravel pits available to provide for Hernandez's needs, but shipping costs differ from location to location.

The following table summarizes the transportation cost.

                        To
From            Job 1          Job 2          Job 3           Tonnage Allowance

Central pit    $9            $ 8            $ 7              3,000
Rock pit      $7               $11            $ 6             4,000
Acme pit    $4              $ 3               $12               6,000

Job requirements (tons) (Job1) 2,500 (Job 2) 3,750 (Job 3) 4,850

Problem A) Determine Hernandez's optimal shipping quantities so as to minimize total transportation costs.

Problem B) It is the case that Rock Pit and Central Pit can send gravel by rail to Acme for $1 per ton. Once the gravel is relocated, it can be trucked to the jobs. Reformulate this problem to determine how shipping by rail could reduce the transportation costs for the gravel.

Reference no: EM133010869

Questions Cloud

Describe a more comprehensive recruitment strategy : Based on your findings in the previous case study that your applicant pool did not include some groups of people, you decide to assess Fox Garrity's recruitment
Prepare a statement of retained earnings for month of march : Determine the ending balance of retained earnings as of March 31st. Hint: prepare a statement of retained earnings for the month of March.
Compare and contrast the communication styles : Compare and contrast the communication styles between transactional and transformational leadership.
Evaluate the productivity of unionized workers : One of the primary criticisms leveled at organized labor is that union-negotiated job security leads to decreased productivity, and indeed breeds a culture of c
Determine hernandez optimal shipping quantities : Determine Hernandez's optimal shipping quantities so as to minimize total transportation costs. Marc Hernandez's construction firm currently has three projects
Create the initial phase of a leadership hiring plan : Discuss advantages and disadvantages with the board of directors and the committee for hiring an HRM in your plan. Topics to include are: Why hire an HRM for th
Destination and develop a destination management strategy : Research and present an analysis for a destination of your choice (from the list given) and present your analysis in a group report
Decisions based on hr analytics data : Some experts argue that HR professionals should make all decisions based on HR analytics data. Do you agree or disagree with this argument? (You should explain
What is the probability that company will win both contracts : What is the probability that the company will win both contracts? An international aerospace company has submitted bids on two separate government

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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