An appliance manufacturer has a plant near Toronto that receives small electric motors from a manufacturer located in Winnipeg. The demand for motors is 126,000 units per year. The cost of each motor is $130. The motors are purchased in lots of 3,700 units. The ownership of motors transfers to the appliance manufacturer in Winnipeg. The question is which mode of transportation, truck or train, the appliance manufacturer should use to bring the motors from Winnipeg to Toronto. The railroad company charges $3 per motor, and it takes approximately seven days by train. The trucking company charges $6 per motor, but it takes only three days. The appliance manufacturer will keep 1,300 units as safety stock if a truck is used and 3,000 units as safety stock if a train is used for transportation. Assume 365 days per year. If the holding cost rate is 22 percent of unit cost per year, which mode of transportation will minimize total transportation and in-transit and safety holding cost? Hint: The value of a motor in Toronto for calculating the safety stock holding cost is $130 plus cost of freight per unit.

The SP Company makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity consists of:Direct Materials$5.50Direct Labour$5.60Variable Manufacturing Overhead$4.75Fixed Manufacturing Overhead$4.45Average cost per motor$20.30An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Company for this motor is $18. If SP Company decides not to make the motors, there would be no other use for the production facilities, and total fixed factory overhead costs would not change. What is the net advantage (disadvantage) of purchasing the motors from outside supplier rather than making them? Assume that direct labour is a variable cost in this company. Question 18Answera.$92,000 net advantageb.$86,000 net disadvantagec.$92,000 net disadvantaged.$86,000 net advantage

Frederick Company is thinking about having one of its products manufactured by an outside supplier. Currently, manufacturing the product would cost $12.40 per unit for direct materials and $9.40 per unit for direct labor. Factory overhead is normally $10.40 per unit, and incremental overhead to make this product is $7.60 per unit. If Frederick Company can buy 5,000 units from an outside supplier for $130,000, the company should:Multiple ChoiceMake the product because current factory overhead is less than $130,000.Make the product because the total incremental costs of manufacturing are less than $130,000.Make the product because factory overhead is a sunk cost.Buy the product because total fixed and variable manufacturing costs are greater than $130,000.Buy the product because the total incremental costs of manufacturing are greater than $130,000.

Lightning Motors purchased electric car batteries worth $75,000 on credit. On the balance sheet, this purchase will be shown as a(n)Multiple Choiceaccount receivable.account payable.accrued revenue.deferred revenue.

You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function q  10 KL, where q is the number of engines per week, K is the number of assembly machines, and L is the number of labor teams. Each assembly machine rents for r  $5,000 per week, and each team costs w  $2500 per week. Engine costs are given by the cost of labor teams and machines, plus $2000 per engine for raw materials. Assume your plant has a fixed installation of 5 assembly machines as part of its design. (a) We get the total cost function is TC(q)=25000+2000q, what are average and marginal costs for producing q engines? How do average costs vary with output? (b) How many teams are required to produce 250 engines? What is the average cost per engine? (c) You are asked to make recommendations for the design of a new production facility. What capital/labor (K/L) ratio should the new plant accommodate if it wants to minimize the total cost of producing at any level of output q? (Hint: Here we no longer assume that K is fixed at 5. You need to find the combination of K and L that minimizes cost at any level of output q.)

The Government of Canada has set a mandate that one-fifth of all passenger cars, SUVs and trucks sold in Canada in 2026 will need to run on electricity under new regulations. By 2030, the mandate will hit 60 per cent of all sales and by 2035, every passenger vehicle sold in Canada will need to be electric. Who are 4 key stakeholders concerning this issue? What are the issues that need to be addressed if this target it to be achieved? And what other related challenges will arise as a result of this bold new plan. If you were hired as a consultant to advise the Government of Canada on this issue, what would be your recommendations? Support your answer by including at least 3 research sources. Post your individual response in this thread the the due date indicated in the subject line.