Ex 20-7 Name:
1) Enter the appropriate amounts in cells E9, G9, I9, and G10.
EOQ = 2DP
C
EOQ = x x
EOQ =
2) Enter the appropriate amounts in cells C21, C22, and G22.
Ordering cost is Number of orders x Order cost
D x P
EOQ
= orders per year
order cost
order cost
Enter the appropriate amounts in cells C34, C35, and G35.
Carrying cost is Average inventory size x Carrying cost
EOQ x C
2
= average inventory size
carrying cost per unit
total carrying cost
Total cost = Ordering cost + Carrying cost
= +
=
3) Savings:
Current cost
Less: EOQ cost
Savings
SOLUTION
Cost Management Hansen and Mowen
Ex 20-7 Name:
1) Enter the appropriate amounts in cells E9, G9, I9, and G10.
EOQ = 2DP
C
2) Enter the appropriate amounts in cells C21, C22, and G22.
Ordering cost is Number of orders x Order cost
D x P
EOQ
Enter the appropriate amounts in cells C34, C35, and G35.
Carrying cost is Average inventory size x Carrying cost
EOQ x C
SOLUTION
Cost Management Hansen and Mowen
Ex 20-9 Name:
Enter the appropriate amount in the shaded cells in column D.
1)
Average rate of usage
x Lead time
Reorder point
2) Maximum usage
– Average usage
Difference
x Lead time
Safety stock
Average rate of usage
x Lead time
+ Safety stock
Cost Management Hansen and Mowen
Ex 20-9 Name:
Enter the appropriate amount in the shaded cells in column D.
1)
Average rate of usage 315
2) Maximum usage 375
– Average usage 315
Difference 60
SOLUTION
Cost Management Hansen and Mowen
Ex 20-16 Name:
Enter the appropriate amounts in the shaded cells in columns D, F, and H.
1) Basic Standard Deluxe
Price
Less: Variable cost
Contribution margin
Divided by machine hours
Contribution margin per mh
Use the pull-down list to enter the name of the type of product to be sold in cell B15 and enter the appropriate
amounts in the shaded cells in columns D, F, and H.
Product to Sell
Contribution margin per unit
Number of units to sell
Total contribution margin
2) Basic Standard Deluxe Total
Contribution margin per unit
Units to sell
Contribution margin
Cost Management Hansen and Mowen
Ex 20-16 Name:
Enter the appropriate amounts in the shaded cells in columns D, F, and H.
1) Basic Standard Deluxe
Price 12.00$ 17.00$ 32.00$
Less: Variable cost 7.00 11.00 12.00
Product to Sell
Basic
Contribution margin per unit 5
2) Basic Standard Deluxe Total
Contribution margin per unit 5.00$ 6.00$ 20.00$
SOLUTION
Cost Management Hansen and Mowen
Prob 20-26 Name:
Enter the appropriate numbers in the shaded cells in columns D and G.
1) Corn Bran
Flakes Flakes
CM per unit
Divided by machine hrs.
CM per machine hr.
To maximize profits, produce:
2) Let corn flakes = X
Let bran flakes = Y
Enter the appropriate numbers in the shaded cells in columns D, G, and J.
a. Formulation: Max X + Y
ST
X + Y <=
X + 0.00 Y <=
0.00 X + Y <=
X>=
Y>=
b. and c.
Corner point X-Value Y-Value 400
A
B350
C
D300 E D
E
250
200
150
100 C
50
0A B
50 100 150 200 250 300
Z = $1.00X + $0.75 Y
Cost Management Hansen and Mowen
Prob 20-26 Name:
Enter the appropriate numbers in the shaded cells in columns D and G.
1) Corn Bran
Flakes Flakes
CM per unit 1.00$ 0.75$
Divided by machine hrs.
1.00 0.50
2) Let corn flakes = X
Let bran flakes = Y
Enter the appropriate numbers in the shaded cells in columns D, G, and J.
a. Formulation: Max 1.00$ X + 0.75$ Y
ST
1.00 X + 0.50 Y <= 200,000
1.00 X + 0.00 Y<= 150,000
SOLUTION
Cost Management Hansen and Mowen
CM per machine hr. 1.00$ 1.50$
To maximize profits, produce: