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All Reece Herbal Supplements purchases, in bulk, a variety of dietary supplements that the company bottles packages, and ships to health-food stores and drugstores around the country. The company has a good reputation, and its products are in high demand. Last year the company purchased mechanical packaging equipment for $300,000 and reduced its shipping department by two people, eliminating an annual salary expense of $1 20,000.When it works, the equipment packages product 20 percent faster than the previous manual system. Unfortunately, the equipment has broken down on many occasions for up to four hours. Normally (when the packaging equipment is working), the company packages 2,500 bottles per hour, and the average contribution margin per bottle is $0.60.The general manager of operations has suggested that the company rehire the two packaging workers as backup for the new packaging system. The company president doesn't think this is a good idea, since the workers will be sitting around doing nothing for 30 hours per week!
Required:
Comment on the general manager's suggestion and the president's reaction. Support your answer with an estimate of the financial impact of rehiring the two workers.
Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000 of monthly variable costs to process into paperclips, which can be sold in..
Prepare the journal entries to record the sale of the printers and the related warranty cost, assuming that the accrual method is used. Actual warranty costs for 2002 were $8,500.
Calculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead and the company's predetermined overhead application rate.
While performance evaluations are part of most organizations, unions tend to disavow their usefulness. Are performance evaluations needed in a union environment?
the alta company is constructing a production complex which qualifies for interest capitalization. the following
Describe the importance of the cash/flow conversion cycle. 2) Compare and contrast various current asset management techniques. 3) Compare and contrast the various methods of short-term financing.
Prepare a production cost report for the month of March and April
Refer to QS21 6. Determine the In QS21 6, SBD Phone Company sells its cordless phone for $ 90 per unit. Fixed costs total $ 162,000, and variable costs are $ 36 per unit.
Accept special sales order? In addition to the product cost information for Lakeside, Inc., in Mini Exercise 16.1,
Dividends during Year 2 totaled $89 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $130.
Prepare a report outlining any issues that may be working against effective performance measurement and incentive systems in the business units.
Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials.
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