Conduct sensitivity analysis of the situation

Assignment Help Operation Management

Reference no: EM132149519

Sensitivity analysis

If you can sell a product for $67 and it costs you $28 per unit to produce, while also paying $3,900 per month in fixed expenses, how many units must you sell each month in order to earn a monthly profit of $2,500? Show all your work.

Using the information from the first problem, your variable costs per unit include labor ($18) and parts ($10). Your fixed costs include maintenance of $750, rent and utilities of $2000, and administration costs of $1150. If you have a labor issue and your costs might vary by $2 next month; and you might have a major repair issue that will add $500; and your administrative costs might vary by 10%. Which is the most important issue to focus on? Conduct a sensitivity analysis of the situation and show all of your work.

Reference no: EM132149519

Questions Cloud

Uncertainty at all about demand or lead time : How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.

List the 3 ways to identify an opportunity : List the 3 ways to identify an Opportunity? Name 3 techniques for generating ideas?

Explain the advantages of utilizing the research firms : Using your favorite search engine, locate the websites for two research firms. Conduct a review of the services offered by these two different research firms.

Potential impact of data mining on backpacking : Apply business information software for data visualization and analysis purposes - Review a range of information system applications

Conduct sensitivity analysis of the situation : Which is the most important issue to focus on? Conduct a sensitivity analysis of the situation and show all of your work.

Create compelling arguments in favor of your solution : Imagine you are an HR manager, and you have been challenged with the task of reducing expatriate turnover. Think of one or two (1-2) strategies to accomplish.

Lean six sigma black belts are highly valued employees : Lean Six Sigma Black Belts are highly valued employees. They are compensated well and are in high demand.

The population of the general community : Contact your local health department; administrator of your local hospital, nursing home, or clinic; or other local public health entity.

Develop an hr strategy for a current or prospective company : In a paper (1,500-1,750 words), develop an HR strategy for a current or prospective company. Detail the implementation plan for your specific HR strategy.

User Account

All Pages