Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motorcycle plant assembles and sells 300 motorcycles each day. Assume there are 360 days in a year. Each engine costs $500, and Harley incurs a holding cost of 20 percent per year.

a) How many engines should Harley load on each truck?

b) Now, Harley has decided to implement JIT manufacturing at the motorcycle assembly plant. As part of this initiative, it has reduced the number of engines loaded on a truck to 100. What would the cost of the truck trip need to be (instead of $1,000) to make a load of 100 engines optimal?

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer