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Question 2 Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four...

Question 2

Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four processes to be completed. Specifically, these processes are exterior construction, pulp filter insertion, painting, and packaging. Each process is performed at separate workstations with different completion rates:

Exterior construction can manufacture 160,000 juicer exteriors per day.
Pulp filter insertion can install 40,000 filters every 6 hours.
Painting can decorate 3,300 juicers every half hour.
Packaging can package 5,300 juicers per hour.

The plant operates 24/7, 24 hours a day every day of the week.

How many JM50 machines can Bryan Inc. manufacture per month (assume an average 30-day month)?

Multiple Choice

  • 6,120,000 juicers.

  • 5,400,000 juicers.

  • 4,800,000 juicers.

  • 5,000,000 juicers.

Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" video player for a price of $400. It costs ECC $285 to make the player. ECC's main competitor is coming to market with a new video player that will sell for a price of $370. ECC feels that it must reduce its price to $370 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 16%. ECC currently sells 215,000 video players per year.

What is the target cost if target profit is 22% of sales and ECC must meet the competitive price of $370?

Multiple Choice

  • $281.10.

  • $288.60.

  • $296.85.

  • $302.60.

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