What is the fixed cost for the regular-time option

Assignment Help Operation Management
Reference no: EM1393386

A manager faces peak (weekly) demand for one of her operations, but is not sure how long the peak will last. She can either use overtime from the current workforce, or hire/lay off and just pay regular-time wages. Regular-time pay is $500 per week, overtime is $750 per week, the hiring cost is $2,000, and the layoff cost is $3,000. Assuming that people are available seeking such a short-term arrangement, how many weeks must the surge in demand last to justify a temporary hire? Hint: Use break-even analysis (see Supplement A, "Decision Making"). Let w be the number of weeks of the high demand (rather than using Q for the break-even quantity). What is the fixed cost for the regular-time option? Overtime option?

Reference no: EM1393386

Questions Cloud

Statistics-savings rates in us : According to the Bureau of Economic Analysis, the savings rate of American households, defined as a percentage of the disposable personal income, was 4.20% in 2009.
Probability of student test score between specific points : Find the probability that the student 's test score is more than 39.8. Find the probability that the student's test score is between 33.5 and 41.9.
Explain why nationalism emerge strongly in latin america : Explain why did nationalism emerge strongly in Latin America in early 20th century? Who were nationalists? What were they reacting to?
How information continuity and mutability differ from base : Three bases per codon are the minimum necessary to code for twenty different amino acids when four different bases are involved.
What is the fixed cost for the regular-time option : What is the fixed cost for the regular-time option? Overtime option? Let w be the number of weeks of the high demand (rather than using Q for the break-even quantity)
Surveys about attitudes of americans : Assume a sample of 400 American adults were taken. Show the sampling distribution of the proportion of adults who balance their checkbook at least once a month.
Symmetry definition of probability : Explain whether the symmetry definition of probability is appropriate with respect to the outcomes in the sample space.
How framework differ between two different content areas : What is successful lesson framework composed of? How would framework differ between two different content areas?
Probability of sample proportions : Roper ASW conducted a survey to learn about American adults' attitudes toward money and happiness. 56% of respondents said they balance their checkbook at least once a month.

Reviews

Write a Review

Operation Management Questions & Answers

  What is the probability that rich will go to each store

Rich's 13 year old daughter Alexandra is going to give him an introductory trombone concert later in the day, and he wants to purchase earplugs before then

  What company wants to forecast demand

company wants to forecast demand using the weighted moving average.

  Should a marketing manager or a business refuse to produce

Should a marketing manager or a business refuse to produce an "energy-gobbling" appliance that some consumers are demanding? Should a firm install an expensive safety device that will increase cost but that customers do not want?

  Requested a meeting with you to explore how you can help

You are an OD consultant for the Working Better Group. The President of a firm, BARTH Inc., requested a meeting with you to explore how you can help him

  Producing one unit of product

Boilermakers, Inc. produces 3 products: A, B, and C. The unit prices of product A, B, and C are $5, $50 and $200, respectively. Assume that these products can be sold in unlimited quantities.

  What kinds of management information systems

What kinds of management information systems will be useful in conducting these activities?

  Technology and sustainability issues

Evaluate how technology, product, and process developments enable a large company like Anglo American to be sustainable, or not.

  What is the theoretical minimum number of stations

What cycle time is required to satisfy the required output? What is the theoretical minimum number of stations?

  Explain gap that political leaders must have solution for it

Any operating loss suffered by an S corporation is shared also immediately deductible on returns of its shareholders?

  Could the hospital really perform this many operations

Elucidate how well will the new resources would be utilised relative to the current operations. Recalling the capacity of 12 surgeons also 5 operating rooms, could the hospital really perform this many operations.

  Compute the optimal order quantity

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

  A simple cpm network has five activities

A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E.Answer

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