Period forecast

1. 200

2. 200

3. 300

4. 400

5. 500

6. 200

regular time: $20 per unit (280 units per period maximum)

overtime: $30 per unit (40 units per period maximum)

subcontracting: not available

beginning inventory: none

carrying cost: $10 per unit per period

backorder cost: $50 per unit per period

how should overtime capacity be utilized? (in what period, and how many units)

a. 40 units in periods 1, 2, and 3

b. 40 units in periods 2, 3, and 4

c. 20 units in periods 1 through 6

d. 40 units in periods 3, 4, and 5

e. 20 units in period 3, 20 units in period 4, and 40 units in period 5,

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine