Case Analysis for Precision Worldwide, Inc

------------------------------------------------- Case Analysis For Precision Worldwide, Inc Solution Considering the option of keep production of poise ring or switching to tensile rings, additive analysis demonstrates plastic rings will settle hail while decrease increasing lucre. Table 1 | Alternative 1| Alternative 2| | (per nose candy)| tensile| brand| | Selling make up | $1,350.00| $1,350.00| | Rings change per week| 6.90*| 6.90*| | Revenue per week| $9,315.00| $9,315.00| 0 incremental tax| Manufacturing Cost | $279.65| $1,107.90| | Cost per week | $1,929.59| $7,644.51| -5,714.93 additive approach| amplification| $7,385.42| $1,670.49| 5,714.93 Incremental Profit| *The conjunction sells 690 rings per week. Since cost calculations argon in hundreds, price ($1,350) is multiplied by 6.90 (690/100) to obtain revenue generated per week. Manufacturing cost is also multiplied by 6.90 to compute cost per week. Incremental revenue between Pl astic and Steel is zero. This results from the company charging the same price for both products. Incremental cost decreases by $5,714.93, likewise yielding an incremental realise of $5,714.93 per week, which equals $297,176.36 incremental pull in a year!

This data suggests it is burning(prenominal) to start manufacturing on sweet plastic rings as soon as the new equipment becomes available; the projected season frame is September. The additional profit between plastic and steel rings derives from the decrease in manufacturing cost. Table 2 Manufacturing Costs (per hundred rings)| | Plastic| Steel| Differ ence(Plastic - Steel)| material | $17.65| ! $321.90| -$304.25| direct labor| $65.50| $196.50| -$131.00| bang | .80/$DL| .80/$DL| | departmental| $131.00| $393.00| -$262.00| administrative| $65.50| $196.50| -$131.00| total cost| $279.65| $1,107.90| -$828.25| A shifting down of expenditures points to a large counterpane in manufacturing cost between...If you want to get a full phase of the slug essay, order it on our website: OrderCustomPaper.com

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