Reference no: EM13890423
Hawk Manufacturing manufactures engine parts for motorcycles. Jordan Smith, Hawk Manufacturing's president, wants to improve the quality of the company's operations and products. She believes waste exists in the design and manufacture of standard engine parts. To begin the improvement process, she has asked you to (1) identify the sources of such waste, (2) develop performance measures to account for the waste, and (3) estimate the current costs associated with the waste. She has asked you to submit a memo of your findings within two weeks so that she can begin strategic planning to revise the price at which Hawk sells engine parts to motor- cycle manufacturers.
You have identified two sources of costly waste. The Production Department is redoing work that was not done correctly the first time, and the Engineering Design Department is redesigning products that were not initially designed to customer speci- fications. Having improper designs has caused the company to buy parts that are not used in production. You have also obtained the following information from the product costing system:
Direct labor costs
|
$673,402
|
Engineering design costs
|
124,709
|
Indirect labor costs
|
67,200
|
Depreciation on production equipment
|
84,300
|
Supervisors' salaries
|
98,340
|
Direct materials costs
|
432,223
|
Indirect materials costs
|
44,332
|
1. In preparation for writing your memo, answer the following questions:
a. For whom are you preparing the memo? What is the appropriate length of the memo?
b. Why are you preparing the memo?
c. What information is needed for the memo? Where can you get this information? What performance measure would you suggest for each activity? Is the accounting information sufficient for your memo?
d. When is the memo due? What can be done to provide accurate and timely information?
2. Prepare an outline of the sections you would want to include in your memo.
Find the probability distribution of x
: a random variable x is defined to be the defined to be the the difference between the higher value and the lower value when two dice are thrown. if they have the same value x is defined to be zero find the probability distribution of x
|
Complete portfolio is composed of treasury bills
: You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 3% and a risky portfolio, P, constructed with two risky securities, X and Y.
|
Firm to guarantee that she is elected to the board
: Laura Lynn owns 20,700 shares of Global Exporters. Her shares have a total market value of $787,270. In total, the firm has 65,000 shares outstanding. Each share is entitled to one vote under the straight voting policy of the firm. How much more must..
|
Standard deviation of return on your portfolio
: You form a portfolio by equally investing in stocks A and B (i.e., investing 50% of your capital in stock A and 50% in stock B). Stock A has a standard deviation of 40%. Stock B has a standard deviation of 60%. The correlation between stocks A and B ..
|
What performance measure would you suggest for each activity
: What information is needed for the memo? Where can you get this information? What performance measure would you suggest for each activity? Is the accounting information sufficient for your memo?
|
Bonds on the market making annual payments
: Essary Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and selling for $952. At this price, the bonds yield 6.1 percent. What must the coupon rate be on the bonds?
|
What are the four steps of capital investment
: What is capital investment analysis? Why are capital investment decisions so important to businesses? What is the purpose of pricing capital investments into categories, such as mandatory replacement, or expansion of existing products, services, or m..
|
Financial statements at the company''s website
: 1.Piaggio (Piaggio.com) manufactures two,three and four wheel vehicles, and is Europe's leading manufacturer of motorcycles and scooters.
|
About the firms discount rate
: Your firm’s discount rate is 10 percent. You are considering the purchase of Truck A or Truck B. Truck A costs $100, has a useful life of 3 years, no salvage value and maintenance costs of $10 per year. Truck B costs $80, has a useful life of 2 years..
|