Case Analysis for Precision Worldwide, Inc

------------------------------------------------- Case Analysis For Precision Worldwide, Inc Solution Considering the option of go on production of poise ring or switching to tensile rings, additive analysis demonstrates plastic rings will lower 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 taxation enhancement| Manufacturing Cost | $279.65| $1,107.90| | Cost per week | $1,929.59| $7,644.51| -5,714.93 additive toll| salary| $7,385.42| $1,670.49| 5,714.93 Incremental Profit| *The family sells 690 rings per week. Since cost calculations atomic number 18 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 reven ue between Plastic 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 service of $5,714.93 per week, which equals $297,176.36 incremental meshing a year!

This data suggests it is burning(prenominal) to start manufacturing on peeled plastic rings as soon as the brand-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)| | Pl astic| Steel| Difference(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 hold down of expenditures points to a large counterpane in manufacturing be between...If you want to get a full phase of the stagnate essay, order it on our website: OrderCustomPaper.com

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