Question

Because of a recent spat with the Indian government, all items related to transportation (including bikes) that are not part of the 2010 pact are added 3.75% tariffs. Your task:

1) You need to produce 300 units of the bike.

2) For Production, you need 10 men on the assembly line. Each making $26/hr.

3) You will need 10 production days to produce this item. (30 bikes per day).

4) You have all the manufacturing machines and tools.

5) Rent for the plant cost $3200/month. Utilities are included (heat, water, gas, internet)

6) Cardboard box and foam for each unit cost 0.95$ BONUS!!!!!!!!!!! 

i) A distributor in Austin, Texas (USA) named Bikes’R’Us has sent you a PO for 10 units. You quote him at the factory price. What is the total amount that you will be making after you convert from USD to CAD? Assume Shipping will be $560 for one pallet FTL from: Toronto, Ontario to Austin, Texas.

Answer 1

To produce 300 units of the bike, you need to consider factors such as labor, materials, machine cost, and rent. The total manufacturing cost can be calculated based on these factors. To convert the amount earned in USD to CAD, the exchange rate needs to be considered. Shipping cost for 10 units to Austin, Texas would be $560.

Step-by-step explanation:

The total manufacturing cost for producing 300 units of the bike can be calculated by considering various factors such as labor, machines, rent, and materials. Based on the given information, the labor cost for 10 men working at $26/hr for 10 days would be $26 x 10 x 10 = $2600. The cost of materials, including cardboard box and foam for each unit, would be $0.95 x 300 = $285. The total manufacturing cost can be estimated by summing up these costs along with the cost of the machine and rent.

To convert the total amount earned in USD to CAD, the current exchange rate between the two currencies would need to be considered.

Additionally, when shipping 10 units to Austin, Texas, the cost would be $560 for one pallet FTL from Toronto, Ontario.