For what range of outputs is each process appropriate

Assignment Help Operation Management

Reference no: EM13222774

A product is currently made in a process-focused shop, where fixed costs are $9000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacture. The new process would have fixed costs of $90,000, and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process appropriate?

Reference no: EM13222774

Questions Cloud

Explain how large an oxygen candle needed to supply oxygen : Ignoring any side reactions and assuming the reaction occurs completely, how large (in kg) an oxygen candle (KClO3) would be needed to supply 8 people with enough oxygen for 24 hours on a small submarine?

What is the mad : use exponential smoothing with a smoothing constant of 0.3 to forecast the registrations at the seminar given in problem 4.10 to begin the procedure, assume that the forecast for year 1 was 5.000 people signing up. what is the MAD?

What would be its cost under each of the three choices : Which process offers the lowest cost to produce 40,000 units? What is that cost?

What characteristics of an effective work group : What characteristics of an effective work group does the Speed Team appear to have and to what extent was a team structure really necessary to carry out the mission of the Speed Team

For what range of outputs is each process appropriate : The new process would have fixed costs of $90,000, and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process appropriate?

Explain determination of the amount of iron in the table : What error will this cause in their determination of the amount of iron in the table?

Define decision variables : define decision variables that will tell how many units to build (windows and doors)

Determine profit-maximizing amount of electricity to produce : The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthly demand for electricity in these counties, which is given by the inverse demand function P = 1000 - 5Q.

State the percentages are the same for all samples analyzed. : A different sample of carbon dioxide also contains 27% carbon and 73% oxygen. The percentages are the same for all samples analyzed. Explain these observations with respect to atomic theory.

User Account

All Pages