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Fowler Industries Produces Two Bearings: C15 and C19

question 81

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Fowler Industries produces two bearings: C15 and C19.Data regarding these two bearings follow.
A.Assume that Fowler decided to produce all C15s and purchase C19s only as needed.Determine the number of C19s to be purchased.
B.Compute the net benefit to the company of manufacturing (rather than purchasing)a unit of C15.Repeat the calculation for a unit of C19.(Note: in answering this question,do not take into consideration any machine hours constraint).
C.C15 consumes 2 hours of machine time,thus providing a net benefit of $1.50 per hour ($3 / 2).In contrast,C19 consumes 2.5 hours of time and produces a benefit of $1.20 per hour ($3 / 2.5).On the basis of this information,the company should focus on C15.
C.Fowler lacks sufficient machine time to produce all of the C15s and C19s needeD.Which component (C15 or C19)should Fowler manufacture first with the limited machine hours available? Why? Be sure to show all supporting computations.
Fowler Industries produces two bearings: C15 and C19.Data regarding these two bearings follow. A.Assume that Fowler decided to produce all C15s and purchase C19s only as needed.Determine the number of C19s to be purchased. B.Compute the net benefit to the company of manufacturing (rather than purchasing)a unit of C15.Repeat the calculation for a unit of C19.(Note: in answering this question,do not take into consideration any machine hours constraint). C.C15 consumes 2 hours of machine time,thus providing a net benefit of $1.50 per hour ($3 / 2).In contrast,C19 consumes 2.5 hours of time and produces a benefit of $1.20 per hour ($3 / 2.5).On the basis of this information,the company should focus on C15. C.Fowler lacks sufficient machine time to produce all of the C15s and C19s needeD.Which component (C15 or C19)should Fowler manufacture first with the limited machine hours available? Why? Be sure to show all supporting computations.

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Definitions:

Actual Value

The true or genuine value of an asset or property, based on factual evidence and market conditions.

Interest in a House

A financial or ownership stake in a property, including rights to use or benefit from the property which may include equity or debt interests.

Co-Insurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the risk by paying a percentage of the total claim amount.

Insurance Company

A financial institution that provides a wide range of insurance policies to protect individuals and businesses against potential loss.

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