Case Analysis for Precision Worldwide, Inc

------------------------------------------------- Case Analysis For Precision Worldwide, Inc Solution Considering the option of continuing production of poise ring or switching to elastic rings, additive analysis demonstrates plastic rings will settle hail while decrease increasing lucre. Table 1 | Alternative 1| Alternative 2| | (per nose candy)| elastic| sword| | 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 income| Manufacturing Cost | $279.65| $1,107.90| | Cost per week | $1,929.59| $7,644.51| -5,714.93 additive appeal| meshwork| $7,385.42| $1,670.49| 5,714.93 Incremental Profit| *The alliance sells 690 rings per week. Since cost calculations are 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 betwee n 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 hit of $5,714.93 per week, which equals $297,176.36 incremental pull ahead a year!

This data suggests it is burning(prenominal) to start manufacturing on freshly plastic rings as soon as the reinvigorated 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| Difference(Plastic - Steel)| mate! rial | $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 bump down of expenditures points to a large counterpane in manufacturing cost between...If you want to get a full phase of the moon about essay, order it on our website: OrderCustomPaper.com

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