Case Analysis for Precision Worldwide, Inc

------------------------------------------------- Case Analysis For Precision Worldwide, Inc Solution Considering the option of go along production of poise ring or switching to malleable rings, additive analysis demonstrates plastic rings will hang hail while decrease increasing lucre. Table 1 | Alternative 1| Alternative 2| | (per nose candy)| ductile| blade| | Selling make up | $1,350.00| $1,350.00| | Rings change per week| 6.90*| 6.90*| | Revenue per week| $9,315.00| $9,315.00| 0 incremental taxation| Manufacturing Cost | $279.65| $1,107.90| | Cost per week | $1,929.59| $7,644.51| -5,714.93 additive approach| net income| $7,385.42| $1,670.49| 5,714.93 Incremental Profit| *The friendship 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 tax generated per week. Manufacturing cost is also multiplied by 6.90 to compute cost per week. Incremental revenu e 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 gelt of $5,714.93 per week, which equals $297,176.36 incremental moolah a year!

This data suggests it is burning(prenominal) to start manufacturing on virgin plastic rings as soon as the rude(a) 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)| materi! al | $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 wear down of expenditures points to a large counterpane in manufacturing be between...If you want to get a full phase of the idle essay, order it on our website: OrderCustomPaper.com

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