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Calculate production rates over first five years

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Reference no: EM131264187

Tech Tools Manufacturing Case

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Kurt is unsure of how to organize the information to help him decide whether or not to start producing the Beta. He is also unsure of how the introduction of a second product will affect his operations and profitability.

Develop/calculate the following: 

  • Depreciation (utilizing MACRS 7 year schedule)
  • Loan Interest
  • Production rates over first five years
  • Labor costs, billed labor rates, including benefits
  • Direct expenses (labor and materials)
  • Under new proposal (second five years)
  • Depreciation and loan interest
  • Revised production rates for Alpha and develop forecast of Direct Labor Hours for second five year period
  • Production rates for Beta
  • Systems Engineer labor costs (hourly wage, billable rate including benefits)
  • Identify Overhead costs
  • Identify cost driver
  • Allocate overhead costs to both Alpha & Beta to determine earnings per unit
  • Develop Income & Cash Flow statements

Conduct your analysis:

  • From a profitability perspective, should Kurt pursue the Beta?
  • What do you specifically attribute to your recommendation to pursue or not?
  • Under what conditions could your recommendation change?

Attachment:- Assignment.rar

Reference no: EM131264187

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len1264187

11/3/2016 2:45:17 AM

I need someone to provide me with the requested report as well as the excel sheet as mentioned in the below mentioned attachments with the step by step details. Your work should be submitted as two attachments (as indicated above). Your answers should be presented as a report in a text document, including any conclusions you have made and any assumptions you have made. You should clearly state where assumptions are being made. You must also include the spreadsheets that SHOW your work.

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