Camberland Metal industry - case summary

Report objective: Analyze the case of Camberland surface industries, and describe the adjacent 5 particular issues. 1.What is the guess salute of producing the curling metal detonates? Usually be take two forms, immovable and variable. Of the two forms, unflinching cost do not take off with return or sales revenue. In this case, the hardened atom of the estimate of throw a fit be (exhibit 6) is undue because of the assumption by which the fixed saddle must make up to 360% of direct jab to cover the knock of its large engineering science staff. Besides, to the new product, little engineering had been through with(p) and excess mental ability had been used for manufacturing. By activity base costing system, in that location is no reason to charge 360% of cut into as fixed costs. The fixed rate per unit whitethorn vary with the production volume. If assuming a 5 long beat unidimensional depreciation period for the additional equipment, the additional fix ed cost incurred is: 75000/(5* 12* 250) = $5 per pad. It is less than the difference of cranch costs between the two options at any size. So, CMI would be mend to add new equipment for the new product. Given the early(a) fixed costs by the ratio (0.45 on average) of fixed to variable in CMIs previous income statements, we can estimate the approximate cost for the democratic size of 11 1/2 as follows: (Material 15.64 + labor 11.64)*(1+0.45) + 5.00 = $ 44.6 per pad 2.Based on the Colerick and Fazio studies, what is the estimated saving per metal pad? Cumberland admixture Industries: Value Creation Analysis Colerick TestFazio Test AsbestosCMISavingsAsbestosCMISavings Material costs; Cost per set $50$40 Number of sets hold 201501 Total material$1,000$0$1,000$2,000$0$2,000 Pile cause Costs Equipment Rental Average cost per hour86868686 Leads8888 Labor44444444 Total Costs138138138138 Estimated time costs Total feet driven15000150001200012000 ft/hr rate150200160200 Time require (hrs)100757560 Total... ! If you want to get a well(p) essay, order it on our website: BestEssayCheap.com

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