AFM102w2010_March24_POSTED

AFM102w2010_March24_POSTED - AFM 102: Introduction to...

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AFM 102: Introduction to Managerial Accounting March 24 T-minus 5. ..
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Agenda
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Atlantic Air Things aren’t going well. Our decision: Drop flights that appear unprofitable? Rev: 175 seats; 40% occupancy; $200 / ticket Cost: Variable costs = $15 per passenger CM = $14,000 - 1,050 = $12,950 per flight Other costs follow….
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Atlantic Air Current CM Salaries (attendants & crew) 3,300 Flight promotion 750 Depreciation Fuel Liability Insurance Baggage & flight prep Overnight costs for crew 300 Total expenses
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Constraints: Balmoral Bricks Manufacturer of clay bricks… Clay Deposits Blends of Clay Create Bricks Palletize Fire in Kiln Package Sale
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Use of a Constraint System can only be as productive as the slowest/least effective element of that system (i.e. the ‘bottleneck’) As such, focus energy on lifting or removing that constraint. Question remains: If (current or incremental) capacity can be used to produce any of multiple products, which should be produced?
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Use of a Constraint Answer:
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AFM102w2010_March24_POSTED - AFM 102: Introduction to...

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