Case Analysis for Precision Worldwide, Inc

------------------------------------------------- Case Analysis For Precision Worldwide, Inc Solution Considering the option of continue production of poise ring or switching to tensile rings, additive analysis demonstrates plastic rings will subside hail while decrease increasing lucre. Table 1 | Alternative 1| Alternative 2| | (per nose candy)| shaping| mark| | Selling make up | $1,350.00| $1,350.00| | Rings exchange per week| 6.90*| 6.90*| | Revenue per week| $9,315.00| $9,315.00| 0 incremental tax tax revenue| Manufacturing Cost | $279.65| $1,107.90| | Cost per week | $1,929.59| $7,644.51| -5,714.93 additive woo| shekels| $7,385.42| $1,670.49| 5,714.93 Incremental Profit| *The play along 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 revenue 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 lettuce of $5,714.93 per week, which equals $297,176.36 incremental returns a year!

This data suggests it is burning(prenominal) to start manufacturing on modern plastic rings as soon as the mod 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)| | Pla stic| 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 weaken down of expenditures points to a large counterpane in manufacturing be between...If you want to get a full phase of the synodic month essay, order it on our website: OrderCustomPaper.com

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