Thompson Company is considering the development of two products: no. 65 or no. 66. Manufacturing cost information follows. No. 65 No. 66

Annual fixed costs $222,000 $340,000

Variable cost per unit 30 25

Regardless of which product is introduced, the anticipated selling price will be $50 and the company will pay a 10% sales commission on gross dollar sales. Thompson will not carry an inventory of these items.

1) Difference between breakeven volume (stated as revenue deollars) for the two products = $

2) Difference between profits of the two products at a sales level of 25,000 units = $

3) At what volume level (expressed as number of units), both products will generate the same level of profit? The volume level =

4) Margin of safety (expressed as a %) for product # 65 when the company is selling 16,000 units =

Create a Pivot Table to compile the following information:

1. The total revenue for each salesperson

2. For each salesperson, the total revenue by product

3. Total revenue generated by each salesperson broken down by location

Please provide excel formulas and solutions

https://drive.google.com/open?id=16kL_VoQlIsOCaioggkjnGBFR_GvCrSGM

Learning Outcome:

1. Demonstrate an understanding of how global competitive environments are changing supply chain management and logistics practice.

2. Apply essential elements of core logistic and supply chain management principles.

3. Analyze and identify challenges and issues pertaining to logistical processes.

Assignment Workload:

This assignment is an individual assignment.

Critical Thinking

The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002). Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).

Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keen indecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.

To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supply techniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’s leads to improvement of manufacturing performance (Fullerton and McWatters, 2002).

Consult chapter 7 of your text book or secondary available data on internet and answer the following questions.

Question:

1. Why Companies adopted Lean Thinking and JIT model?
2. Discuss major types of Waste, companies has to keep in mind during production.
3. Assess the reasons for using lean thinking (suitable examples), what are the benefits from Suppliers to end users?
4. Due to COVID 19 emergency do you think agile supply chain is the right concept in this kind of situation? Give reason with example.

The Answer should be within 4- 5 pages.

The Answer must follow the outline points below:

• Lean Thinking and JIT Concept
• Agile Supply chain
• Their Main functions
• Reasons with suitable Examples
• Reference

Ans 1:

Ans 2:

Ans 3:

Ans 4:

How could bringing a process into statistical control affect a company's production schedule? What benefits can customers see as a result of doing business with a company whose processes are running in a stable, predictable manner?

Build a Date class and a main function to test it

Specifications
Below is the interface for the Date class: it is our "contract" with you: you have to implement everything it describes, and show us that it works with a test harness that puts it through its paces. The comments in the interface below should be sufficient for you to understand the project (use these comments in your Date declaration), without the need of any further documentation.

class Date
{
 private:
   unsigned day;
   unsigned month;
   string monthName;
   unsigned year;

 public:
   // creates the date January 1st, 2000.
   Date();


   /* parameterized constructor: month number, day, year 
       - e.g. (3, 1, 2010) will construct the date March 1st, 2010

       If any of the arguments are invalid (e.g. 15 for month or 32 for day)
       then the constructor will construct instead a valid Date as close
       as possible to the arguments provided - e.g. in above example,
       Date(15, 32, 2010), the Date would be corrected to Dec 31st, 2010.
       In case of such invalid input, the constructor will issue a console error message: 

       Invalid date values: Date corrected to 12/31/2010.
       (with a newline at the end).
   */
   Date(unsigned m, unsigned d, unsigned y);


   /* parameterized constructor: month name, day, year
 ­      - e.g. (December, 15, 2012) will construct the date December 15th, 2012

       If the constructor is unable to recognize the string argument as a valid month name,
       then it will issue a console error message: 

       Invalid month name: the Date was set to 1/1/2000.
       (with a newline at the end).

       If the day argument is invalid for the given month (but the month name was valid),
       then the constructor will handle this error in the same manner as the other
       parameterized constructor. 

       This constructor will recognize both "december" and "December"
       as month name.
   */
   Date(const string &mn, unsigned d, unsigned y);


   /* Outputs to the console (cout) a Date exactly in the format "3/1/2012". 
      Does not output a newline at the end.
   */
   void printNumeric() const;


   /* Outputs to the console (cout) a Date exactly in the format "March 1, 2012".
      The first letter of the month name is upper case, and the month name is
      printed in full - January, not Jan, jan, or january. 
      Does not output a newline at the end.
   */
   void printAlpha() const;

 private:

   /* Returns true if the year passed in is a leap year, otherwise returns false.
   */
   bool isLeap(unsigned y) const;


   /* Returns number of days allowed in a given month
      -  e.g. daysPerMonth(9, 2000) returns 30.
      Calculates February's days for leap and non-­leap years,
      thus, the reason year is also a parameter.
   */
   unsigned daysPerMonth(unsigned m, unsigned y) const;

   /* Returns the name of a given month
      - e.g. name(12) returns the string "December"
   */
   string name(unsigned m) const;

   /* Returns the number of a given named month
      - e.g. number("March") returns 3
   */
   unsigned number(const string &mn) const;
};

Private Member Functions

The functions declared private above, isLeap, daysPerMonth, name, number, are helper functions - member functions that will never be needed by a user of the class, and so do not belong to the public interface (which is why they are "private"). They are, however, needed by the interface functions (public member functions), which use them to test the validity of arguments and construct valid dates. For example, the constructor that passes in the month as a string will call the number function to assign a value to the unsigned member variable month.

isLeap: The rule for whether a year is a leap year is:

(year % 4 == 0) implies leap year

except (year % 100 == 0) implies NOT leap year

except (year % 400 == 0) implies leap year

So, for instance, year 2000 is a leap year, but 1900 is NOT a leap year. Years 2004, 2008, 2012, 2016, etc. are all leap years. Years 2005, 2006, 2007, 2009, 2010, etc. are NOT leap years.

Output Specifications

Read the specifications for the print function carefully. The only cout statements within your Date member functions should be:

1. the "Invalid Date" warnings in the constructors

2. in your two print functions

Required main function to be used:

Date getDate();

int main() {

   Date testDate;
   testDate = getDate();
   cout << endl;
   cout << "Numeric: ";
   testDate.printNumeric();
   cout << endl;
   cout << "Alpha:   ";
   testDate.printAlpha();
   cout << endl;

   return 0;
}

Date getDate() {
   int choice;
   unsigned monthNumber, day, year;
   string monthName;

   cout << "Which Date constructor? (Enter 1, 2, or 3)" << endl
      << "1 - Month Number" << endl
      << "2 - Month Name" << endl
      << "3 - default" << endl;
   cin >> choice;
   cout << endl;

   if (choice == 1) {
      cout << "month number? ";
      cin >> monthNumber;
      cout << endl;
      cout << "day? ";
      cin >> day;
      cout << endl;
      cout << "year? ";
      cin >> year;
      cout << endl;
      return Date(monthNumber, day, year);
   } else if (choice == 2) {
      cout << "month name? ";
      cin >> monthName;
      cout << endl;
      cout << "day? ";
      cin >> day;
      cout << endl;
      cout << "year? ";
      cin >> year;
      cout << endl;
      return Date(monthName, day, year);
   } else {
      return Date();
   }
}

As you know, we have been renting Building X for several years to the Smith Company for $30,000 per year. Their lease expires at the end of the year. Instead of renewing the lease, I have been thinking that we should use that part of our plant to manufacture a new product. The direct materials cost for the new product will total $80 per unit. To have a place to store finished units of the product, we will rent a small warehouse nearby. The rental cost will be $500 per month. In addition, we must rent equipment for use in producing the new product; the rental cost will be $4,000 per month. We will hire workers to manufacture the new product, with the direct labor cost amounting to $60 per unit. The space in Building X will continue to be depreciated on a straight-line basis, as in prior years. This depreciation is $8,000 per year. Advertising costs for the new product will total $50,000 per year. I am going to hire a supervisor to oversee production; her salary will be $3,500 per month. Electricity for operating the machines will be $1 per unit. The cost of shipping the new product to customers will be $9 per unit. To provide funds to purchase materials, meet payroll, and so forth, we will have to liquidate some temporary investments. These investments are presently yielding a return of about $3,000 per year. I would like to sell the new product for $200 per unit. The marketing department thinks that at that price we should be able to sell 4,000 units every year. Please review the costs below and let me know if you think the costs should be classified as a product cost, a period cost, or an opportunity cost (pick one). I also would like to know if the behavior of the product cost or period cost is fixed or variable. Opportunity costs should not be classified as fixed or variable. (Hint: There are two opportunity costs in this problem. They are the two items that are ‘revenue’ in the list of costs.) Name of Cost Variable or Fixed Cost Product Cost Period Cost Opportunity Cost Rental revenue (from Smith Co.) forgone, $30,000 per year Direct materials cost, $80 per unit Rental cost of warehouse, $500 per month Rental cost of equipment, $4,000 per month Direct labor cost, $60 per unit Depreciation of Building X, $8,000 per year Advertising cost, $50,000 per year Supervisor’s salary, $3,500 per month Electricity for machines, $1 per unit Shipping cost, $9 per unit Revenue earned on investments, $3,000 per year Based on the information above, do you think we should manufacture the new product or should we continue to rent to Smith Company? In the space below and on the next pages, please provide me with numbers to support your answer. Are there any costs that are not relevant in this decision? How many units do we need to sell in order to ‘break even?’ Option 1: Continue to rent to Smith Company Rental revenue from Smith _______________ Investment revenue _______________ Total revenue _______________ Expenses: ________________________ _______________ Net operating income _______________ Option 2: Manufacture the new product Henry Hawkins Industries Contribution Format Income Statement: New Product For the Year Total Per Unit Sales (4,000 units) $800,000 $200 Variable expenses: _____________________ _______________ ______ _____________________ _______________ ______ _____________________ _______________ ______ _____________________ _______________ ______ Total variable expenses _______________ ______ Contribution margin _______________ ______ Fixed expenses: _____________________ _______________ _____________________ _______________ _____________________ _______________ _____________________ _______________ _____________________ _______________ Total fixed expenses _______________ Net operating income _______________ Questions: 1. Do you recommend Option 1 or Option 2? 2. Which cost is not relevant to the decision? (Hint: which cost shows up in both options.) 3. How many units of the new product do we need to sell in order to ‘break-even?’ (Break-even is where the net operating income is zero.)

During 2018, Waggoner Company performed services for which customers paid or promised to pay $587,000. Of this amount, $552,000 had been collected by the end of 2018. Waggoner paid $340,000 in cash for employee wages and owed the employees $15,000 at the end of the year for work that had been done but had not paid for. Waggoner paid interest expenses of $3,000 and $195,000 for other service expenses. The income tax rate was 35%, and income taxes had not yet been paid at the end of the year. Waggoner declared and paid dividends of $20,000. There were no other events that affected cash.

Please provide answers to the followings:

a. Prepare an income statement for Waggoner for the year (December 31 year-end).

b. Prepare the statement of cash flows for the year (December 31 year-end) and state change in cash.

Pharmacy Company has two customers CVX and Ma & Pa with data as follows:

Pharmacy Company’s management accountant gathered the following ABC rate information:

Using the information in the tables above and allocating indirect support costs using ABC to customers, what is the Operating Income for the CVX customer?

Multiple Choice

• $ 59,400

• $ 72,129

• $ 117,000

A company reported the following information:

Cash received from customers = $27,300

Cash paid to suppliers = $11,400

Cash paid for other operating expenses = $7,400

Cash paid for income taxes = $3,250

The company’s cash flow from operating activities is closest to?