CONSULTING POJECT Production Decisions at Harding Silicon Enterprises, Inc.
Harding Silicon Enterprises, Inc. produces less than 1% of the world’s supply of 32 MB random access memory (RAM) chips for electronic devices. HSE’s RAM chips perform according to globally accepted performance standards for this type of silicon chip (i.e., its chips are just like every other producers’ chips). HSE has hired you to do undertake three tasks:
HSE provides you with the following cost and output data for the past 19 months. Over this time period, inflation has been so low that you do not need to adjust the cost data for the effects of inflation (the CPI rose only 0.4% over the 19 month time period). Monthly output of chips is given in the second column, which is titled “Monthly production of finished product.” Costs are reported in seven categories (some are fixed costs and some are variable costs). HINT: Remember, cost items are part of fixed costs if the costs do not vary with output, even though fixed cost items may vary over time.
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