Break-even analysis, Applied Statistics

Assignment Help:

a. How can break-even analysis be used in selecting a new plant site?

b. What are potential advantages and disadvantage of locating a production facility in foreign country instead of using domestic location?

c. A company that produces pleasure boats has decided to expand one of its line. Current facilities are insufficient to handle the increased workload, so company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable cost: fixed cost would be $250,000 per year, and variable costs would be $500 per boat. Subcontracting would involve a cost per boat of $2,500 and expansion would require an annual fixed cost of $50,000 and variable cost of $1,000 per boat.

  i.  Find the range of output for each alternative that would yield the lowest total cost

  ii. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats?

  iii. What other factors might be considered in choosing between expansions and subcontracting?


Related Discussions:- Break-even analysis

Purposive or judgement sampling, Purposive or Judgement Sampling Under ...

Purposive or Judgement Sampling Under this method of sampling, the choice  of selection of sample  items from the universe  depends exclusively on the judgement  of the investi

Asymmetric proximity matrices, Asymmetric proximity matrices Immediacy...

Asymmetric proximity matrices Immediacy matrices in which the off-diagonal elements which are, in the i th row and j th column and the j th row and i th column, are not essent

Determine the regression equation, The file Midterm  Data.xls has a tab lab...

The file Midterm  Data.xls has a tab labeled "National Grid vs. Alcoa" which presents historical price data for two stocks.  Using the National Grid price as the X-value and the Al

Time series, merits and demerits of methods to determin trends

merits and demerits of methods to determin trends

Vital statistics, How vital statistics are affects on our human life

How vital statistics are affects on our human life

Probability and expectation, Ten balls are put in 6 slots at random.Then ex...

Ten balls are put in 6 slots at random.Then expected total number of balls in the two extreme slots

Find relative maxima and minima, Q. Find relative maxima and minima? Wh...

Q. Find relative maxima and minima? When finding relative maxima and minima in the Chapters absolute extrema problem, don't forget to use the first or second derivative test to

Large-sample and small-sample simulations, Show that when h = h* for the h...

Show that when h = h* for the histogram, the contribution to AMISE of the IV and ISB terms is asymptotically in the ratio 2:1. Compare the sensitivity of the AMISE(ch) in Equa

Write Your Message!

Captcha
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