Brabham enterprises manufactures tires for the formula

When answering the questions, the work that you submit for grading must be your work. Any plagiarism will result in a grade of zero for the exam. If you have questions, please consult with the instructor. The evaluation of the work, especially the qualitative questions depends on the organization of the material and the depth of the answers. The quantitative questions should show the computations/process not just an answer.MBA 640 Problems for 2nd Half of Course 1. DryPool T-Shirt Factory manufactures plain white and solid colored T-shirts. Inputs include the following: Price Quantity Cost per unit of output Fabric $6 per yard 1 yard per unit $6 per unit Labor $12 per DLH 0.25 DLH per unit $3 per unit Additionally, the colored T-shirts require 3 ounces of dye per shirt at a cost of $0.20 per ounce. The shirts sell for $15 each for white and $20 each for colors. The company expects to sell 12,000 white T-shirts and 60,000 colored T-shirts uniformly over the year. DryPool has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.00 per ounce. The company would still need three ounces of dye per shirt. DryPool is reluctant to change because of the increase in costs (and decrease in profit) but the Environmental Protection Agency has threatened to fine them $102,000 if they continue to use the harmful but less expensive dye. a) Given the preceding information, would DryPool be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.) b) Assume DryPool chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. If DryPool can reduce fabric and labor costs each by 1% per month, how close will it be at the end of 12 months to the gross profit it would have earned before switching to the more expensive dye? (Round to the nearest dollar for calculating cost reductions) 2. Easecom Company is a manufacturer of videoconferencing products. Regular units are manufactured to meet marketing projections, and specialized units are made after an order is received. Maintaining the videoconferencing equipment is an important area of customer satisfaction. With the recent downturn in the computer industry, the videoconferencing equipment segment has suffered, leading to a decline in Easecom’s financial performance. The following income statement shows results for 2011: Easecom Company Income Statement For the Year Ended December 31, 2017 (in thousands) Revenues: Equipment $6,000 Maintenance contracts 1,800 Total revenues $7,800 Cost of goods sold -4,600 Gross margin 3,200 Operating Costs Marketing 600 Distribution 150 Customer maintenance 1,000 Administration 900 Total operating costs -2,650 Operating income $550 Easecom’s management team is in the process of preparing the 2018 budget and is studying the following information: 1. Selling prices of equipment are expected to increase by 10% as the economic recovery begins. The selling price of each maintenance contract is expected to remain unchanged from 2017.