Assignment task:
Yeti Mugs Incorporated (YMI) is a manufacturing company with two distinct divisions. The two divisions that exist at YMI are the Manufacturing Division and the Finishing Division. The Manufacturing Division is where all of the mugs are produced from raw materials. The Finishing Division is where the mugs are cleaned, quality checked and then packaged for sale. The financial details for each of the divisions are as follows: Manufacturing - Each mug requires 0.5kg of aluminum - A kilogram of aluminum has a market cost of $6.50 - Each mug requires 20 minutes of direct labour to finish - An hour of direct labour in the Manufacturing Division is $30.00 - Manufacturing overhead is applied at $7.25 per direct labour hour Finishing - Each mug goes through a quality inspection which takes 15 minutes - An hour of direct labour in the Finishing Division is $22.00 - Each mug is packaged in one (1) box - Each box costs $1.00 - Manufacturing overhead is applied at $9.85 per direct labour hour YMI has made the following assumptions about the operations in each respective division: Manufacturing - The price of aluminum will remain constant over the next four (4) years