1.

A) First, calculate activity rates:

Cell: Driver is conversion time (in minutes):
$9.600/(600+1800) = $4 per minute
Engineering: Driver is Engineering hours:
$3.400/80 $42.50 per eng, hr.
Testing: Driver is testing hours:
$3.000/80 = $37.50 per test hour

Next, calculate product costs:

Model A Model B
Cell:
$4 x 600 $ 2,400.00
$4 x 1,800 $ 7,200.00
Engineering:
$42.50 x 15 $ 637.50
$42.50 x 65 2,762.50
Testing:
$37.50 x 25 937.50
$37.50 x 55 2.062.50
Total $3.975.00 $12,025.00
Units 50 150
Unit cost (cost/units ) $79.50 $80. 17

B) Average Cost = $16.000/200 = $80. The average cost approximates the ABC Costs
with very little error suggesting that the two value stream products are quite simlar.
2. A) 2006 2007 2008
Environmental benefits:
Ozone-depleting substances,
cost reductions $960,00 $1,600,000 $2,560,000
Environmental costs:
Engineering design 1,280,000 640,000 80,000
B) In 2006, the cost reductions were less than the design cost. However, in the following
year, the cost reduction achieved matched the design cost, and the reductions achieved in
the prior year are costs avoided in 2007 as well. Thus. the total savings are $1,600,000,
the sum of last year's ($960,000) plus this year's ($640,000). In 2006, the design costs are
$80,000, and the pollution Costs are reduced by an additional $960.000. Thus, the total
savings per year now amount to $2,560,000 (the sum of the current-year savings plus the
costs avoided from improvements of prior years) How much is an annuity of
$42.560.000 worth? Certainly more than the $2.160,000 paid for engineering design
 activity in 2005, 2006, 2007. and 2008! This seems to support ecoeffi- ciency: improving
environmental performance improves economic efficiency.
3. 1) e
2) c
3) d
4) b
5) a
4. A) Mexican division’s ROI = $ 150,000/$ 1,500,000 = 10.0%
British division’s ROI = $ 230,000/$2,000,000 = 11.5%
B) Tidak, kita tidak dapat secara langsung membandingkan Peran kedua divisi tanpa
mengetahui lebih banyak tentang faktor budaya dan lingkungan yang dihadapi masing-
masing.