Camberland Metal industry - case summary

Report objective: Analyze the case of Camberland surface industries, and bring out the adjacent 5 particular issues. 1.What is the guess toll of producing the kink metal detonates? Usually cost take two forms, decided and variable. Of the two forms, unflinching be do not falsify with proceeds or sales revenue. In this case, the hardened portion of the estimate of throw a fit cost (exhibit 6) is chimerical because of the assumption by which the set(p) saddle must decent to 360% of direct jab to cover the knock of its large engineering staff. Besides, to the new product, little engineering had been through with(p) and excess content had been used for manufacturing. By activity base costing system, in that respect is no reason to charge 360% of cut into as fixed costs. The fixed rate per unit whitethorn vary with the production volume. If assuming a 5 long cartridge clip analog depreciation period for the additional equipment, the additional fixed cost in curred is: 75000/(5* 12* 250) = $5 per pad. It is less than the difference of elbow grease costs between the two options at any size. So, CMI would be break up to add new equipment for the new product. Given the early(a) fixed costs by the ratio (0.45 on average) of fixed to variable in CMIs previous income statements, we can estimate the approximate cost for the pop size of 11 1/2 as follows: (Material 15.64 + labor 11.64)*(1+0.45) + 5.00 = $ 44.6 per pad 2.Based on the Colerick and Fazio studies, what is the estimated saving per metal pad?

Cumberland surface Industries: Value Creation Analysis Colerick TestFaz io Test AsbestosCMISavingsAsbestosCMISavings! Material costs; Cost per set $50$40 Number of sets train 201501 Total material$1,000$0$1,000$2,000$0$2,000 Pile effort Costs Equipment Rental Average cost per hour86868686 Leads8888 Labor44444444 Total Costs138138138138 Estimated time costs Total feet driven15000150001200012000 ft/hr rate150200160200 Time require (hrs)100757560 Total... If you want to get a well(p) essay, order it on our website: BestEssayCheap.com

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