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Canisters Unlimited (8 points)The production manager at Canisters
MBA540Homework DueWeek 2Canisters Unlimited (8 points)The production manager at Canisters Unlimited needs to determine which product orders to fill.He has gathered the following data:ProductsFixed cost (per week)Variable cost (per case)Selling Price (per case)Fill time per case(minutes)Cases ordered (per week) A$90033.00$45.00 B$24012.00$15.00 C$60045.00$60.00 D$60016.00$20.00 E$3,00025.00$35.00 F$1,50035.00$40.00 1090 4100 550 850 3400 4200 Assume that is a product is discontinued for the week, that product’s fixed costs are not incurredduring that week.a) Calculate the break-even volume for products A-F.ProductsFixed cost (per week)Variable cost (per case)Selling Price (per case)Fill time per case(minutes)Cases ordered (per week)CM /unitBreak-even volume A$90033.00$45.00 B$24012.00$15.00 C$60045.00$60.00 D$60016.00$20.00 E$3,00025.00$35.00 F$1,50035.00$40.00 109045-33=12 410015-12=3 55060-45=15 85020-16=4 900/12=75 240/3=80 600/15=40 600/4=150 340035-25=103000/10=300 420040-35=51500/5=300 b) If the plant runs at full capacity (70 hours), which orders can be filled?c) Due to a machine break-down, the manager estimates that only 40 hours of capacity will beavailable. Which products should be manufactured? Carson Distributions (8 points)Carson Distributions is a successful company selling environmentally friendly equipmentcleaning solutions to companies. Their current sales program rewards salesmen based on casesales volume, available to both sales personnel and staff. Bonuses are paid monthly. Sales are doing phenomenally due to a small group of employees who go the extra mile. One employeestated, “I love working here. I’m good at what I do and the company rewards me well for theeffort I make.” Carson Distributions recently hired a new Human Resources manager who iscontemplating changing the current bonus program to be more directly linked with thecompany’s goals. The new bonus structure would pay out yearly, and would be based on thecompany’s ability to meet their target profit goals and the employee’s personnel evaluation. Thebonus would be divided equally among all employees in order to encourage a collaborative teamatmosphere. Discuss what you think happened after implementing the new profit sharingprogram.
