Draw a graph illustrating the crossover point

Assignment Help Operation Management

Reference no: EM131256151

Stan Fawcett's company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3,000 units. Stan estimates that it will cost $15,000 to set up the process and then $1.82 per unit for labor and materials.

a) Draw a graph illustrating the crossover (or indifference) point.

b) Determine the number of units where either choice has the same cost.

Reference no: EM131256151

Questions Cloud

Calculate the materials price variance : Calculate the Materials Price Variance. Calculate the Materials Usage Variance. Calculate the Labor Rate Variance. Calculate the Labor Efficiency Variance.

Find the temperature of the water : Water is forced through a contraction causing low pressure. The water is observed to "boil" at a pressure of -11.5 psi. If atmospheric pressure is 14.5 psi, what is the temperature of the water?

Web research assignment visit the following websites : Choose the one that you think is the best, based on information included and clarity of ideas. Write a paragraph describing it (this is called an annotation). Cite the reasons that the site seems credible (is the information accurate, has it been ..

What is the maximum possible spacing of the pumps : Oil is transported through a pipeline by a series of pumps that can produce a pressure of 10 MPa in the oil leaving each pump. The losses in the pipeline cause a pressure drop of 600 kPa each kilometer. What is the maximum possible spacing of the ..

Draw a graph illustrating the crossover point : Draw a graph illustrating the crossover (or indifference) point. - Determine the number of units where either choice has the same cost.

Calculate the density of air inside a house : Calculate the density of air inside a house and outside a house using 20°C inside and -25°C outside. Use an atmospheric pressure of 85 kPa. Do you think there would be a movement of air from the inside to the outside (infiltration), even without a..

Prepare trial balance : Prepare a trial balance for the following. Analyze the account and their balances and prepare a list that describes each of the seven most likely tranactions and their answers. Prepare a report of cash received and cash paid showing how the seven tra..

Which of the following assets is the most liquid : Which of the following best explains a potential disadvantage of leaving securities in street name? Which of the following assets is the most liquid

What are the total assets of the company : A company reported total equity of $145,000 on its Dec 31, 2006, balence sheet. The following information is available for the year ended Dec 31 2007; What are the total assets of the company at Dec 31, 2007?

User Account

All Pages