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Bayview Case

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Issue:

Miscellaneous

 

Written by:

Sharon B

 

Date added:

June 29, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 622

 

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9522 times

 

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Thus the variable component of overheads is (250 X .2 = 50)% of direct labor costs. 4. Selling & administrative expense is 15% of sales (selling price for calculations per unit) of which, half is variable. Thus 7.5% of direct labor costs is variable. We can make a table of contributions & profits for all three products as follows: We know the constraints: 1...
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Max demand for A, B & C is 130,000, 50,000 and 50,000, respectively. 2. Departments 1 and 2 cannot exceed 67,000 and 63,000 capacity respectively. 3. To maintain loyal customers, we must supply at least 80,000, 32,000 and 12,000 units of A, B & C, respectively. 4. The total production capacity of the whole factory cannot exceed last year’s production i...
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