ORIE_350_Homework__8_ProblemSet - ORIE 3150 Homework #8 Due...

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ORIE 3150 Due November 18, 2008 Homework #8 1. Depregno Industries is making a labor intensive industrial filter product. They found the second unit cost $30,000 in labor. The fourth unit had a labor cost of $26,100. Given that learning is taking place, find the expected labor cost for the: a. 7 th unit b. 11 th unit 2. A contractor manufactures small backup power systems. Learning is taking place. Given the following data, estimate the cost of unit #6 and unit #10. Unit 1: $46,346 Unit 2: $38,941 Unit 3: $32,611 Unit 4: $31,929 Unit 5: $28,645 3. Johnson Manufacturing has the following data from its factory, collected on a monthly basis over the past eight months. . Production (Units) Cost of Goods Sold ($) 1184 480,000 570 354,000 681 369,000 1288 539,000 887 398,000 795 427,000 978 444,000 1089 483,000 a) Using linear regression, find the fixed cost per month and the variable cost per unit for the factory. b) Using linear regression, predict the cost of goods sold on a per unit basis for a month in which 1400 units were manufactured.
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4. Topper Golf makes practice putting greens for home use. They have three models, the Par, Birdie and Eagle. The putting greens consist of an artificial grass carpet covering an undulating surface, in a framed circular area about 15 feet in diameter. As such, these practice greens are quite large and rather expensive. Last year, sales were as follows: Par Birdie Eagle Sales (units) 140 160 70 Sales ($) $168,000 $288,000 $280,000 Variable costs (per unit) Manufacturing 300 400 600 Selling 100 100 100 Fixed costs (total) Manufacturing $120,000 Selling, Admin. $180,000 a) If the product mix is constant, find the breakeven point in units of each model. b)
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This homework help was uploaded on 02/20/2009 for the course ORIE 3150 taught by Professor Callister during the Fall '08 term at Cornell University (Engineering School).

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ORIE_350_Homework__8_ProblemSet - ORIE 3150 Homework #8 Due...

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