32) Managerial Financial Accounting Assignments AP7-17 (a) Solution

32) Managerial Financial Accounting Assignments AP7-17 (a) Solution

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AP7-17 (a)
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Incorrect. (Appendix) Batch Size Decision and Constraints [LO A1] At Dalton Playground Equipment, the powder-coating process is a bottleneck. Typically, it takes approximately two hours to switch between jobs. The time is spent cleaning nozzles and paint tanks and recalibrating equipment. Currently the company runs relatively small batch sizes through the process but is considering increasing them to reduce setup time. With small batch sizes, powder coating can process approximately 2,200 units per 8-hour
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Unformatted text preview: shift, and products have an average contribution margin of $55. With large batch sizes, powder coating can process approximately 2,980 units per 8-hour shift. Calculate the additional profit associated with running larger batch sizes through the powder-coating process. $[no answer] Click here if you would like to Show Work for this question AP7-17 (a) Additional units in 8 hour shift 780 Times average contribution margin $55 Additional profit per 8 hour shift with larger batch sizes $42,900...
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