• Research Paper on:
    Metal Works Case Study

    Number of Pages: 3

     

    Summary of the research paper:

    This 3 page paper examines a case study supplied by the student, drawing a cost curve and then looking at what impact would be seen with investment that would bring down the variable costs. The bibliography cites 1 source.

    Name of Research Paper File: TS14_TEmetalw.rtf

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    Unformatted Sample Text from the Research Paper:
    However we do not have all the other costs so we will show the student how to calculate this so that can apply this to their won work. There will  always be overheads, these are costs which will remain the same no matter how many units are manufactured. We know there is an inventory carrying cost of 20% and an  ordering cost of $100 per month assuming a monthly order. There is the demand of 100 a day, so assuming a 30 day month this gives us a demand of  3,000. We will assume the overheads are 5,000 per month. The different fixed cost figures the change the position of the cost curve, but the pattern would be the  same. For 2001 there would be the same pattern but with demand going up to 107 per day this would increase demand to 3210. The curve would  see the total cost curve reach closer to the variable cost doyen to 25.59. 2. If we adjust this for the investment in the plant that increase production and decreases  viable costs this is what we get 150 750 1500 2250 3000 3750 4500* 4815** Fixed cost per item 51.00 6.80 3.40 2.27 1.70 1.36 1.13 1.06 Variable cost  per item 19.95 19.95 19.95 19.95 19.95 19.95 19.95 19.95 Carrying cost 3.99 3.99 3.99 3.99 3.99 3.99 3.99 3.99 Total variable cost 23.94 23.94 23.94 23.94 23.94 23.94 23.94  23.94 Total Cost 74.94 30.74 27.34 26.21 25.64 25.30 25.07 25.00 * 2000 and *2001 However we have the cost of the machinery to be written off over a period  of time that should be included. Of we look at the alterative with the lower investment there is also a higher production level this would lower the variable cost 

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