What is the indifference point

Assignment Help Operation Management
Reference no: EM131665209

1. Simuelson industries can produce its own motors for a $32,000 fixed monthly cost and a $40 variable cost per unit. Alternatively, Simuelson industries can purchase the motors from an outside supplier for an extra fixed cost of $34,000 per month and a $30 variable cost per unit. What is the indifference point?

A. 130 Units B. 132 Units C. 200 Units D. 125 Units E. 129 Units

2. Using the information from question 9 what option should be chosen if monthly demand is 124 units?

A. Inhouse B. Outsource C. No Preferable Option D. Not enough information.

Reference no: EM131665209

Questions Cloud

Explain why businesses develop information systems : Point out some of the wrong reasons businesses sometimes cite for developing information systems and support your answer with examples.
Firm to look to market when developing its strategy : When is it appropriate for the firm to look to the market when developing its strategy?
How does your chosen discourse interpret the fbi practices : How does your chosen discourse interpret the FBI practices described in the video? What are at least one cost and one benefit associated with such practices?"
Prepare the current assets section of the balance sheet : Cullumber Corporation's adjusted trial balance contained the following asset accounts at December, Prepare the current assets section of the balance sheet
What is the indifference point : What is the indifference point?
Compute the arithmetic mean annual rate of return : Compute the arithmetic mean annual rate of return for each stock. Which stock is most desirable by this measure?
Discuss pain in the critically ill patient : Perform a search in two scholarly databases for an article that is relevant to that topic. Share the name, URL and a brief description of the two databases
What citizens can do to protect themselves : What citizens can do to protect themselves? How your agency can address the concern, including measures and surveillance?
Should propaganda itself be a war crime : Discuss the idea that leaders should focus on the success of others rather than their own personal success. Should propaganda itself be a War Crime?

Reviews

Write a Review

Operation Management Questions & Answers

  What is the system capacity

What is the system capacity, and which is the bottleneck department. How much slack (unused capacity) is available in other departments

  Method for overcoming that resistance

Select two reasons why people resist change and, for each of them, suggest a method for overcoming that resistance. Which two types of change resistance do you think are most common and why?

  Hazard protection plan identifying potential hazards

Please write a hazard protection plan identifying potential hazards within the home and outdoor area accessible to the children in care.

  Why would management adopt stability strategy

Why would management adopt a stability strategy? Can stability strategies be viable over a lengthy period of time? Why or why not? When is a retrenchment strategy appropriate? What criteria can help determine what particular retrenchment strategy sho..

  Group of parts is to be manufactured on two machines

A group of parts is to be manufactured on two machines: machine A and machine B. 60% of the parts will be manufactured on machine A. Machine A produces defective parts (D) 10% of the time while Machine B produces defective parts 20% of the time. Calc..

  What does the term qualifying mean

What does the term qualifying mean? What are the four basic questions that should be answered during the qualifying process?

  What effect does upper management commitment have

What are the differences between Six Sigma and Lean Principles? What effect does upper management commitment have on the success of either of these processes?

  The scene is campus security office

The scene is a campus security office, where two students are being questioned. A few minutes earlier, they were engaged in a fistfight in the cafeteria. The campus police ask them again and again how the fight started. But is there a truth to discov..

  What is the multi-factor productivity for the tires

Lake Manufacturing produces bike tires. They make 1,000 tires per daywith the following resources: What is the labor productivity per hour for the tires? What is the multi-factor productivity for the tires?

  Business-related email about the new project assignment

A co-worker sends you a business-related email about the new project assignment. The email has numerous grammar and spelling errors. His language is confusing and you are not certain what the message is stating. By utilizing the concepts from the rea..

  What factors contribute to the cohesiveness

What factors contribute to the cohesiveness of the Sternberg-Silverman-Friedman group? What factors might affect the group's performance norms in the future? What might be the potential consequences for group cohesiveness and performance?

  Find an organization with mission and vision statement

Find an organization with a mission and/or vision statement. What values do you see reflected in the statement? What important values are absent in your opinion?

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