Making managerial decisions in general

Assignment Help Operation Management

Reference no: EM13962245

Your company, Diamond Dynamics, is researching whether or not it would be a good decision to invest in new manufacturing equipment that will significantly speed up production time on the assembly line. However, the total cost of the equipment and installation, not including any maintenance plan, is a hefty investment of roughly $850,000. In a 500-word description, Explain how a CVP analysis would be useful for determining whether or not the investment is worth it. Also, explain the limitations of a CVP analysis in this situation and for making managerial decisions in general.

Reference no: EM13962245

Questions Cloud

How much should the company be willing to pay : Assuming that this extra time would be used to produce Leather Library Chairs, up to how much should the company be willing to pay per hour to keep the upholstery shop open after normal working hours?

What is the maximum speed of the tip of a prong : A 42.5 kg chair is attached to a spring and allowed to oscillate. When the chair is empty the chair takes 1.30 s to make one complete vibration. But with a person sitting in it, with her feet off the floor, the chair now takes 2.54 s for one cycle..

Independent variable-dependent variable : Identify the independent variable and the dependent variable for this experiment. Sketch a polygon showing the frequency distribution for the humurous sentences. In the same graph, sketch a polygon for the nonhumurous sentences. Does it appear that..

Management different than straight financial accounting : What are some key components to monitor the health of the project, as it relates to earned value? How is earned value management different than straight financial accounting?

Making managerial decisions in general : Your company, Diamond Dynamics, is researching whether or not it would be a good decision to invest in new manufacturing equipment that will significantly speed up production time on the assembly line. Explain the limitations of a CVP analysis in thi..

Examine the experiences of the local populations : Examine the experiences of the local populations and varied demographics, including African Americans, women, and lower classes. What changed because of the movement from isolationism to expansionism

What are they focusing on in addressing the challenge : What problem or challenge do they have and what are they focusing on in addressing the challenge? What did you find interesting? What company is the subject for your Business Report and what problem can you help them address through the use of IT?

Confidence the improvement in sales : To determine the effect of advertising in the Yellow Pages, Bell Telephone took a sample of 40 retail stores that did not advertise in the Yellow Pages last year but did so this year. The annual sales (in thousands of dollars) for each store in bo..

A sinusoidal voltage of 10 v rms is applied at terminals 11'' : The transformer in the following circuit (see attached file Figure 4.10) has a turns ratio of 10.

User Account

All Pages