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Rating: 10 star
Date: 29/10/2022
Feedback Given By:
wayne32 Feedback Comment: Great work
Project Details
Project Status: completed
This work has been completed by:
financeville Total payment made for this project was: $ 30.00
Project Summary: Carlos Cavalas, the manager of Echo Products’ Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell 3,600 units
during the year, but by September 30 only the following activity had been reported:
Units
Inventory, January 1st: 0 units
Production: 2400 Units
Sales: 2000 units
Inventory, September 30th: 400 units
The division can rent warehouse space to store up to 1,000 units. The minimum inventory level that the division should carry is 50 units. Mr. Cavalas is aware that production must be at least 200 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 1,500 units per quarter. Demand has been soft, and the sales forecast for the last quarter is only 600 units. Due to the nature of the division’s operations, fixed manufacturing overhead is a major element of product cost.
