Assignment: Capacity & Process

A) Capacity

Portland Sewing Factory makes 3 different kinds of bags: Messenger, Grocery, and Fashion. Using the information provided below and in Assignment 1 Capacity Data, calculate the require capacity for this years production. The times are given for an assembly line so your ending calculations should suggest how many lines will be necessary assuming two shifts, each with 2,000 hours.

1. Using the formulas and cell referencing learned in the Excel lessons, set up this problem on the data file sheet so that it easy to follow to the answer. (Note: =Sumproduct formula would be helpful for Total Processing Time and Total Setup time).

2. Place your answer table in your word document and explain your answer.
B) Break-even/Indifference

Camas Ketchup produces a bottled product that currently has annual fixed of $240,000 and $0.50 per bottle. The company is looking at 2 new packaging lines. Line A has a fixed cost of $320,000 per year and variable costs of $0.30 while Line B has a fixed cost of $400,000 per year and variable costs of $0.25. (Data is also provided on a separate worksheet in Assignment 1 Data)

1. What are the indifference points between the various processes?
2. Fill out the table with different units and the total cost for each level of unit production?
3. If the sales are expected to be 250,000 bottles, what should they do?
4. If the sales are expected to be 500,000 units, what should they do?
5. If sales are expected to be 1,000,000 bottles, which process should be used?
6. Extra Credit: Use a line chart to graph the three options together.

Format:

One page of written text (full paragraphs & subheadings) with the exhibits added after the text with appropriate labels (Figure 1: XXX).

• Past the appropriate tables of answers into the paper with your written summary.
• Please upload both your excel spreadsheet and your written report.