updates now or try tonight Spring 2018 Principles of Manager

updates now or try tonight? Spring 2018 Principles of Managerial Accounting Homework: Chapter 1 Homework Score: 0 of 1 pt E1-16A (similar to anilton Hw Score: 83.33%, 5 of 6 pts Help Lunar Industries manufactures iPhone case covers. Wyenne Williams, the CEO, is trying to decide whether to adopt a lean thinking model. She expects that adopting would save $67,000 in warehousing expenses and $38,800 in spoilage costs. Adopting lean production will require several one-time up-front expenditures:$13,750 for an employee training program, $55,000 to streamline the plants production process, and $6,500 to identify suppliers that will guarantee zeno defects and on-time delivery. The total costs of adopting lean pr 2. What are the total benefits of adopting lean production? 3. Should the company adopt lean production? Why or why not? Print Done Clear All remaining 18

Solution

1.

Total cost of adopting the lean thinking model

Emplyees training programme = 13750 $

Sreamline the plant = 55000 $

Identify the supplier = 6500 $

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Total Cost = 75250 $

2.

Benefits in form of saving from lean production -

Saving in warehouse expense = 67000 $

Saving in spoilage cost = 38800 $

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Total benefit achieved = 105800 $

3.

Cost Benefit Analysis Statement

Cost of Adopting the lean production = (75250) $

Savings from lean production = + 105800 $

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Extra benefit from Adopting lean = 30550 $

Therefore it is advisable to adopt Lean production model.