What is the range of units for which machine is preferable

Assignment Help Operation Management

Reference no: EM132079205

Nagle? Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $85,000 and a variable cost of $15, with a capacity of 14,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $50,000. The variable cost will be higher, at $19 per unit. Each unit is expected to sell for $24.

a) What is the crossover point (point of indifference) for the two machines?

The crossover point for the two machines is _______ units. (Round your response to the nearest whole number.)

b) What is the range of units for which machine A is preferable?

Machine A is preferable at a level of production _____and ______ units.

units. (Enter your response as a whole number.)

c) What is the range of units for which machine B is preferable?

Machine B is preferable at a level of production ____ and ______ units.

Reference no: EM132079205

Questions Cloud

What new business strategies is anheuser busch pursing : What is Anheuser Busch's competitive advantage? What new business strategies is Anheuser Busch pursing?

Will the project be limited to one specific service system : In the lesson for the week, three service systems were named: cook-chill, cook-freeze, cook-hot-hold. For your discussion this week, define each system.

Industry is making better and better products each year : It seems as if everyone I now has a computer or cellphone. The electronics industry is making better and better products each year.

The standard type we are most accustomed to and why : Would you prefer Google's organizational culture or the standard type we are most accustomed to and why.

What is the range of units for which machine is preferable : What is the range of units for which machine A is preferable? What is the range of units for which machine B is preferable?

Global environment and long run profitability : What is Anheuser Busch's global environment and it's long run profitability?

Difference between strategy and operational effectiveness : Briefly describe the difference between strategy and operational effectiveness.?

Be sure to consider the categories of ethical values : Be sure to consider the categories of ethical values and apply one or two models before reaching your conclusion.

Nature of strategic decision making at anheuser busch : What is the nature of strategic decision making at Anheuser Busch?

User Account

All Pages