Determine the range of annual production

Assignment Help Operation Management

Reference no: EM13232522

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor for $7 each or to produce them in-house. Either of two processes could be used for the in-house production. Production Option One would have an annual fixed cost of $160,000 and a variable cost of $5 per unit. Production Option Two would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual production for which each of the alternatives would be best.

Reference no: EM13232522

Questions Cloud

Determine the amount alistair must deposit on june : Alistair deposited $10,000 on July 1, 2005, in a first fund that gives interest of 31 2 percent compounded semiannually and matures on June 1, 2012. He knows that, on December 18, 2012, he can deposit money in a second fund

Explain the stilbene molecule has seven double bonds : The stilbene molecule has seven double bonds, yet in this reaction, only one of them undergoes addition with the Br2 generated in the reaction mixture. What functional group(s) is(are) the other six bonds in, and what can you say about the reactiv..

Compute the optimal pricing scheme of the iphone : Suppose that technophiles are willing to pay $400 now for the latest iphone, but only $300 if they have to wait a year. Normal people are willing to pay $250 and their desire to purchase doesn't vary with time. Ignore the time value of money

Develop a list of the departmental forms found in record : Explain how the use of a speech recognition software program allows the data to be stored and retrieved, and how this relates to a Clinical Information System.

Determine the range of annual production : Production Option Two would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual production for which each of the alternatives would be best.

What were main benefits fromt activities of goldsmith banker : An early goldsmith banker earned a profit (sometimes a large profit) simply by writing notes to certify that a person had deposited a certain amoumt of gold in his vault. By writing more notes than the amount of gold held

Define the neurospora dna and plasmid : A kan-r, tet-r plasmid is treated with the restriction enzymeBglI, What anitbiotic would you put in the growth medium to ensure that each colony has the plasmid, Which phenotype will contain Neurospora DNA

How are consumers motivated to action : How are consumers motivated to action? Name a minimum of two motivational AND personality theories and evaluate the implication upon consumer behavior.

Are there areas that should be added to the code : why do you think that the field of human services needs an ethical code? What would happen without a code? Are there areas that should be added to the code that are not present now?

User Account

All Pages