Determine the break-even level of output

Assignment Help Operation Management
Reference no: EM131793335

A company is considering investing in one of the production processes identified below. The company anticipates charging $12 each for each new unit of output it will produce.

First process FC = 170,000     VC = 7$/unit

Second process FC 200,000      VC =$6/unit

A. Determine the break-even level of output for each of the processes.

B. If the company CFO, “Rowdy” Rob Robert’s goal is to make a target profit of $100,000, determine which process requires producing and selling the smaller quantity to achieve this target.

C. Suppose the company’s new CEO, “Trembling Joe” Green thinks that a profit of $50,000 is a safer bet than the CFO’s estimate. Overruling the CFO, Green wants to know which process requires a lower level of production to achieve his target profit.

Reference no: EM131793335

Questions Cloud

Discuss at least two external recruitment sources : Discuss at least two external recruitment sources. Also include in your discussion one advantage and disadvantage to the type of external recruitment method
How are the trans-membrane proteins : How are the trans-membrane proteins (cadherins) at Adherens junctions linked to the actin cytoskeleton within cells
Discuss using straight-line amortization : the payment of interest on June 30, 2014, using straight-line amortization
What is the premise of healthcare policies : What is the premise of healthcare policies? Who are the major players in health policies? How does health policy impact society?
Determine the break-even level of output : Determine the break-even level of output for each of the processes.
Summarize the case roe v wade : Roe v. Wade (1973) and Lawrence, et al. v. Texas (2003) ,Summarize the following cases in 100 to 200 words (one to two paragraphs) each.
How does the aca impact society as a whole : How does the ACA impact society as a whole? Highlight the relevance of the Federal Medicaid Assistance Percentage (FMAP), as it relates to the ACA.
What all should an entrepreneurial marketing plan include : For an startup e-commerce business what all should an entrepreneurial marketing plan include?
What do you predict would be the effect of given situation : What do you predict would be the effect of this situation on ability of all parties involved to be flexible and respond to challenges in an innovative manner?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd