Embed Size (px)
DESCRIPTION
QAT
Citation preview
A. Complete the attached “Simulation Template” to determine the following costs:
1. Average materials cost per unit The below are the steps I used to find the material cost per unit. The first thing I had to figure out was the interval random numbers. In order to find out the material cost per unit, I had to figure out the interval random numbers. Materials |Probability | Cost | Interval Random Numbers* |0.18 | $ 33.00 | 0.00 < 0 .18 |0.23 | $ 35.00 | 0.18 < 0.41 |0.32 | $ 38.00 | 0.41< 0.73 |0.27 | $ 39.00 | 0.73 < 1 |
*This numbers came from the probability. Starting at 0.00 less than the probability which is 0.18 then we start at 0.18 (which is the initial probability) less than 0.41. Now 0.41 comes from adding the initial probability of 0.18 and the second 0.23. Now we start at 0.41 less than 0.73 (this number comes from adding 0.41 plus the thirst probability of 0.32). Now we start at 0.73 less than 1 (this number comes from adding 0.73 plus the last probability of 0.27)- Now I have everything I need to find the Average materials cost per unit. First, we look at the random numbers given by the scenario and apply the cost to the table given depending on where in the interval numbers the random number falls. Random Number | Materials Cost per Unit |28 | $ 35.00 |14 | $ 33.00 |44 | $ 38.00 |51 | $ 38.00 |91 | $ 39.00 |38 | $ 35.00 |79 | $ 39.00 |70 | $ 38.00 |98 | $ 39.00 |11 | $ 33.00 |By matching the color of the random numbers to the first table you can tell where the random number falls and this is where the materials cost per unit comes from and it is being input on the second table.Now I added all the 10 costs per units amount from table 2 and divided by 10 in order to get the average.35 + 33 + 38 + 35 + 39 + 35 + 39 + 38 + 39 + 33= 367Now 367/10 = 36.70The average materials cost per unit is $36.70
2. Average labor cost per unitIn order to figure out the average labor cost per unit, I had to figure out the interval random numbers just like I did to figure the average materials costs.Labor |Probability | Cost | Interval Random Numbers |0.12 | $ 22.00 | 0.0 < 0.12 |0.18 | $ 23.00 | 0.12 < 0.30 |0.22 | $ 24.00 | 0.30 < 0.52 |0.28 | $ 25.00 | 0.52 < 0.80 |0.2 | $ 28.00 | 0.80 < 1 |*This numbers came from the probability. Starting at 0.00 less than the probability which is 0.12
Page 1 of 3Qat1 Task 1
04-01-2014http://www.papercamp.com/print/Qat1-Task-1/98442
then we start at 0.12 (which is the initial probability) less than 0.30. Now 0.30 comes from adding the initial probability of 0.12 and the second 0.18. Now we start at 0.30 less than 0.52(this number comes from adding 0.30 plus the third probability of 0.22). Now we start at 0.52 less than 0.80 (this number comes from adding 0.52 plus the second to last probability of 0.28). Now we start at 0.80 less than 1 (this number comes from adding 0.80 plus the last probability of 0.20)- Now I have everything I need to find the Average labor cost per unit. First, we look at the random numbers given by the scenario and apply the cost to the table given depending on where in the interval numbers the random number falls. Random Number | Labor Cost per Unit |21 | $ 23.00 |50 | $ 24.00 |90 | $ 28.00 |71 | $ 25.00 |10 | $ 22.00 |11 | $ 22.00 |70 | $ 25.00 |16 | $ 23.00 |88 | $ 28.00 |67 | $ 25.00 |
By matching the color of the random numbers to the Labor table you can tell where the random number falls and this is where the labor cost per unit comes from and it is being input on the second table.Now I added all the 10 costs per units� amount from table 2 and divided by 10 in order to get the average.23 + 24 + 28 + 25 + 22 + 22 + 25 + 23 + 28 + 25 = 245Now 245/10 = 24.50The average labor cost per unit is $24.50.
3. Average utilities cost per unitIn order to figure out the average utilities cost per unit, I had to figure out the interval random numbers just like I did to figure the average materials costs and average labor costs.
Utilities |Probability | Cost | Interval Random Numbers |0.26 | $ 3.00 | 0.00 < .026 |0.43 | $ 4.00 | 0.26 < 0.69 |0.31 | $ 6.00 | 0.69 < 1 |*This numbers came from the probability. Starting at 0.00 less than the probability which is 0.26 then we start at 0.26 (which is the initial probability) less than 0.69. Now 0.69 comes from adding the initial probability of 0.26 and the second 0.43. Now we start at 0.69 less than 0.1 (this number comes from adding 0.0.69 plus the last probability of 0.31). - Now I have everything I need to find the Average utilities cost per unit. First, we look at the random numbers given by the scenario and apply the cost to the table given depending on where in the interval numbers the random number falls. Random Number | Utilities Cost per Unit |85 | $ 6.00 |64 | $ 4.00 |15 | $ 3.00 |66 | $ 4.00 |45 | $ 4.00 |74 | $ 6.00 |62 | $ 4.00 |
Page 2 of 3Qat1 Task 1
04-01-2014http://www.papercamp.com/print/Qat1-Task-1/98442
18 | $ 3.00 |74 | $ 6.00 |35 | $ 4.00 |
By matching the color of the random numbers to the Utilities table you can tell where the random number falls and this is where the utilities cost per unit comes from and it is being input on the second table.Now I added all the 10 costs per units� amount from table 2 and divided by 10 in order to get the average.6 + 4 + 3 + 4 + 4 + 6 + 4 + 3 + 6 + 4 = 44Now 44/10 = 4.40-The average Utilities cost per unit is $4.40
4. Average total cost per unit-In order to find the average total cost per unit we add the average materials cost per unit plus the average labor cost per unit plus the average utilities cost per unit. | Materials cost per unit | Labor cost per unit | Utilities cost per unit |Average | $ 36.70 | $ 24.50 | $ 4.40 |
36.70 + 24.50 + 4.40 = $65.60The average total cost per unit is $65.60B. �etermine the selling price per unit that should be established for this product using your simulation results and assuming that the company wants to reali�e an average markup of $20 on each unit sold.The easy way to determine this is adding the $20 dollars mark up to the average total cost per unit which is $65.60. This will give us an average selling price of $85.60 dollars.
ReferencesAnderson, S., � Camm, � . (2010). Quantity Methods for Business.Mason, ��: South-� estern Cengage Learning.
Page 3 of 3Qat1 Task 1
04-01-2014http://www.papercamp.com/print/Qat1-Task-1/98442
