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Table 1. Input Data For Manufacturing A Bookshelf Resource Teak Mahogany Labor

The document discusses a company that produces custom wood furniture including bookshelves made from teak or mahogany. It provides data on the materials and labor required for bookshelves as well as current costs and anticipated annual cost increases.

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40 views1 page

Table 1. Input Data For Manufacturing A Bookshelf Resource Teak Mahogany Labor

The document discusses a company that produces custom wood furniture including bookshelves made from teak or mahogany. It provides data on the materials and labor required for bookshelves as well as current costs and anticipated annual cost increases.

Uploaded by

SAMRIDHI
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The Woodworks Company produces a variety of custom-designed wood furniture for its

customers. One of the most popular furniture is a bookshelf, made from either teak or mahogany.

The company knows that wood prices and labor costs are likely to increase in the future. The

table below shows the number of board-feet and labor hours required for a bookshelf, the current

costs per board-foot and labor hour, and the anticipated annual increases in these costs.

Table 1. Input Data for Manufacturing a Bookshelf


Resource Teak Mahogany Labor
Required per bookshelf 30 30 16
Current Unit Cost 450 325 1175
Anticipated annual cost increase 2.4% 1.7% 1.5%

The mangers at Woodworks would like to experiment with the growth rates in wood and labor

costs to see how the costs of the bookshelves may vary in the next few years.

(Source: Practical Management Science, Winston and Albright)

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