Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large electronics manufacturer to produce three models of lithium-ion battery packs for a new line of phones. The contract calls for the following
Battery Pack Production Quantity
PT-100 200,000
PT-200 100,000
PT-300 150,000
Photon Technologies can manufacture the battery packs at manufacturing plants located in the Philippines and Mexico. The unit cost of the battery packs differs at the two plants because of differences in production equipment and wage rates. The unit costs for each battery pack at each manufacturing plant are as follows:
Plant
Product Philippines Mexico
PT-100 0.95 0.98
PT-200 1.34 0.98
PT-300 1.06 1.15
The PT-100 and PT-200 battery packs are produced using similar production equipment available at both plants. However, each plant has a limited capacity for the total number of PT-100 and PT-200 battery packs produced. The combined PT-100 and PT-200 production capacities are 175,000 units at the Philippines plant and 160,000 units at the Mexico plant. The PT-300 production capacities are 75,000 units at the Philippines plant and 100,000 units at the Mexico plant. The cost of shipping from the Philippines plant is $0.15 per unit, and the cost of shipping from the Mexico plant is 0.08 per unit.
(a) Develop a linear program that Photon Technologies can use to determine how many units of each battery pack to produce at each plant to minimize the total production and shipping cost associated with the new contract.
(b) Solve the linear program developed in part (a), to determine the optimal production plan. Qty Produced Phillipines Mexico PT-100 16000c 40000 PT-200 100000 0 5000 1000 PT-300 Total Cost-$
(c) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-100 in the Philippines plant. If required, round your answer to two decimal digits At least $ / unit.
(d) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-200 in the Mexico plant. If required, round your answer to two decimal digits. At least $ .05/ unit.

Answer:

Check the explanation

Explanation:

a) Linear program model:

Decision variables: Let

P1 = Number of PT-100 products produced at Philippines plant

P2 = Number of PT-200 products produced at Philippines plant

P1 = Number of PT-300 products produced at Philippines plant

M1 = Number of PT-100 products produced at Mexico plant

M2 = Number of PT-200 products produced at Mexico plant

M3 = Number of PT-300 products produced at Mexico plant

Objective: Min (0.95+0.15)P1 + (0.98+0.15)P2 + (1.34+0.15)P3 + (0.98+0.08)M1 + (1.06+0.08)M2 + (1.15+0.08)M3

or,

Min 1.10P1 + 1.13P2 + 1.49P3 + 1.06M1 + 1.14M2 + 1.23M3

s.t.

P1 + M1 ≥ 200,000

P2 + M2 ≥ 100,000

P3 + M3 ≥ 150,000

P1 + P2 ≤ 175,000

M1 + M2 ≤ 160,000

P3 ≤ 75,000

M3 ≤ 100,000

P1, P2, P3, M1, M2, M3 ≥ 0

(b) Solution of the linear program using Excel Solver can be seen in the first attached image below.

Formula: H2 =SUMPRODUCT(B2:G2,$B$11:$G$11)   copy to H2:H9

Optimal Solution:

Decision Variable              Value

P1                                     40000

P2                                     100000

P3                                     50000

M1                                     160000

M2                                     0

M3                                     100000

Total production and shipping cost = $ 524,100

Sensitivity report can be seen in the second attached image below.

Referring to above sensitivity analysis,

(c) Allowable decrease in objective coefficient of P1 is 0.04 therefore production and/or shipping cost per unit has to decrease by $ 0.04 to produce additional units of PT-100 in Philippines plant.

(d) Allowable decrease in objective coefficient of M2 is 0.05 therefore production and/or shipping cost per unit have to be decreased by $ 0.05 to produce additional units of PT-200 in Mexico plant.

Grant Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books, 7/31 $3,500 Deposits in transit 150 Notes receivable and interest collected by bank 850 Bank charge for check printing 20 Outstanding checks 2,000 NSF check 170 The adjusted cash balance per books on July 31 is a. $4,160. b. $4,010. c. $2,310. d. $2,460.

Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The investment costs $54,000 and has an estimated $7,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)

Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $270,000. During June, the company produced and sold 10,800 units and incurred actual variable costs of $351,000 and actual fixed costs of $285,000. Actual sales for June were $885,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)

The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This would produce a(n) ________.

Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project: Sales $500,000 Less cash variable expenses 200,000 Contribution margin 300,000 Less fixed expenses: Fixed cash expenses $150,000 Depreciation expenses 37,500 187,500 Net operating income $112,500 The company's required rate of return is 10%. The payback period for this project is closest to:

What does the phrase "Revenue is recognized at the point of sale" mean? a.Revenue is recorded in the accounting records when the goods are received from a supplier and reported on the income statement when sold to the customer. b.Revenue is recorded in the accounting records when the goods are sold to a customer and reported on the income statement when the cash payment is received from the customer. c.Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer. d.Revenue is recorded in the accounting records and reported on the income statement when the cash is received from the customer.

Micro Miller Company’s budgeted sales for April were estimated at $700,000, sales commissions at 4% of sales, and the sales manager's salary at $80,000. Shipping expenses were estimated at 1% of sales and miscellaneous selling expenses were estimated at $1,000, plus 0.5% of sales. Determine the budgeted selling expenses on a flexible budget for April.

In the late 1990s, the United States experienced very high GDP growth, record low unemployment rates, and virtually nonexistent inflation. Based on the conclusions of the AD/AS model, this combination of good economic results can be explained by a __________.
a. rightward shift of the aggregate demand.
b. leftward shift of the aggregate demand.
c. rightward shift of the short- or long-run aggregate supply.
d. leftward shift of the short- or long-run aggregate supply.

Each unit of finished product requires 3 feet of raw materials. The company maintains raw materials inventory equal to 2,000 feet plus 10% of the next month's expected production needs. The raw material used in Dustman Manufacturing Corporation's product costs $4.50 per foot. What is the value of raw material that Dustman Manufacturing should plan on purchasing for the month of February?

C Corporation is investigating automating a process by purchasing a machine for $792,900 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $132,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,100. The annual depreciation on the new machine would be $88,100. The simple rate of return on the investment is closest to (Ignore income taxes.):

On December 31, 2017, Berclair Inc. had 560 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 168 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $1,050 million.
Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.
Required:
a. Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018.

The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.

Account Title Debits Credits
Cash $91,000
Accounts receivable 186,000
Inventory 298,000
Prepaid expenses 174,000
Equipment 346,000
Accumulated depreciation $123,000
Investments 166,000
Accounts payable 73,000
Interest payable 33,000
Deferred revenue 93,000
Income taxes payable 43,000
Notes payable 265,000
Allowance for uncollectible accounts 29,000
Common stock 413,000
Retained earnings 189,000
Totals $1,261,000 $1,261,000

Additional information:

1. Prepaid expenses include $146,000 paid on December 31, 2021, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
2. Investments include $43,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $123,000 is an investment in equity securities that the company intends to sell in the next year.
3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
4. The notes payable account consists of the following:
a. a $53,000 note due in six months.
b. a $134,000 note due in six years.
c. a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2022. The common stock account represents 413,000 shares of no par value common stock issued and outstanding. The corporation has 826,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021.

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a.0.421 875
c 0.011 718 75
b. 0046 875
d. 0.1875
​

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