Ch11_E12_E13 - 600 1,000 1,500 Total Units Sold 42,000,000...

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E11-12 Activity Pool Rates: Total Activity # of Activity Cost per Costs Drivers Instance Testing $240,000 1000 $240 Reworking $400,000 5000 $80 Expediting $300,000 100 $3,000 Repairing $540,000 1250 $432 Bach Rivera Purchase 10800 $270 $2,916,000 2400 $300 $720,000 Testing 990 $240 $237,600 10 $240 $2,400 Reworking 4900 $80 $392,000 100 $80 $8,000 Expediting 99 $3,000 $297,000 1 $3,000 $3,000 Repairing 1220 $432 $527,040 30 $432 $12,960 Total Costs $4,369,640 $746,360 Number of engines 10,800 2,400 Cost per engine $404.60 $310.98 E11-13 Previous Year Info: 100,000 Total Orders 2,000 Orders per Step 50 Steps $70,000 Cost per step $3,500,000 Step Fixed Costs $6,300,000 Total Previous Year Ordering Costs $2,800,000 Variable Component $28.00 per order 100,000 Number of Orders Current Year Projected: Family A Family B Family C Total Number of Orders 70,000 42,000 28,000 140,000
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Average Order Size
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Unformatted text preview: 600 1,000 1,500 Total Units Sold 42,000,000 42,000,000 42,000,000 126,000,000 Ordering Costs Step Fixed $2,450,000 $1,470,000 $980,000 $4,900,000 Variable $1,960,000 $1,176,000 $784,000 $3,920,000 Total $4,410,000 $2,646,000 $1,764,000 $8,820,000 Per Unit Cost $0.105 $0.063 $0.042 $0.070 4,410,000 2,646,000 1,764,000 8,820,000 Requirement 3: Current Year New Policy: Number of Orders 21,000 21,000 21,000 63,000 31.5 Average Order Size 2,000 2,000 2,000 Total Units Sold 42,000,000 42,000,000 42,000,000 126,000,000 Ordering Costs Step Fixed $746,667 $746,667 $746,667 $2,240,000 Variable $588,000 $588,000 $588,000 $1,764,000 Total $1,334,667 $1,334,667 $1,334,667 $4,004,000 Per Unit Cost $0.03 $0.03 $0.03 $0.03 Cost Reduction: $4,816,000 0.11 0.06 0.04 0.21 0.13 # of Steps...
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Ch11_E12_E13 - 600 1,000 1,500 Total Units Sold 42,000,000...

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