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Question: WimCo Mfg produces cogdarts at several plants. The cogdart sells for $24.00 per unit. Plant A produces 800 units per hour. The plants works an eight (8) hour shift five (5) days per week. There are four (4) workers assigned to the production line. The average hourly rate per worker is $18.00. Each cogdart takes 2.25 pounds of material and the price per pound for the material is $2.80. Overhead is $5,246.00 per day. The defect rate for the Plant A production is 3%. The production process results in a byproduct that sells for $.75 per pound. The byproduct is part of the cogdart production revenue and the byproduct output is equivalent to 15% of the total production raw materials.
Plant B produces 950 units per hour. The cogdart sells for $24.00 per unit. The plants works an eight (8) hour shift five (5) days per week. There are two (2) workers assigned to the production line. The average hourly rate per worker is $21.50. Each cogdart takes 2.25 pounds of material and the price per pound for the material is $2.80. Overhead is $7,232.00 per day. The defect rate for the Plant B production is 2.25%. The production process results in a byproduct that sells for $.75 per pound. The byproduct is part of the cogdart production revenue and the byproduct output is equivalent to 15% of the total production raw materials.
1. What is the weekly multi-factor (total) productivity for Plant A? (Compute and round to 4-decimal places).
2. What is the weekly multi-factor (total) productivity for Plant B? (Compute and round to 4-decimal places).
3. What is the productivity difference between Plant A and Plant B? (Compute and round to 4-decimal places).
Martin Company sells a certain product for $15 per unit. The beginning inventory is 40,000 units, and the desired ending inventory is 32,000 units. If budgeted production is 100,000 units, what is the forecasted sales revenue from the product?
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