Question:
Forecasting resource capacity using a time-driven ABC system Refer to the time-driven ABC analysis of forecasting resource capacity for the Madison Dairy ice cream plant example on pages 181-184 of this chapter. Suppose that all the information is the same except for the following:
|
|
VANILLA
|
CHOCOLATE
|
STRAWBERRY
|
MOCHA-ALMOND
|
TOTAL
|
|
Sales volume (gallons)
|
15,500
|
13,000
|
1,600
|
1,200
|
31,300
|
|
# production runs
|
18
|
16
|
4
|
3
|
41
|
Required
(a) Assuming that only full-time employees can be hired, determine the number of production employees required to meet this production plan. Also, determine the number of machines required for this production plan.
(b) Prepare a pro forma monthly product line income statement
(c) What are the company's gross profit and the ratio of gross profit to sales after incorporating the cost of unused capacity?