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

Define sampling unit , Define sampling unit and population for selecting a ...

Define sampling unit and population for selecting a random sample in every case. a) 100 voters from a constituency b) 20 stocks of National Stock Exchange c) 50 account ho

Compute the output of correlation, Q. Compute the output of correlation? ...

Q. Compute the output of correlation? The following figure shows (a) a 3-bit image of size 5-by-5 image in the square, with x and y coordinates specified, (b) a Laplacian

student is chosen randomly, In a management class of 100 childerns' 3 lang...

In a management class of 100 childerns' 3 languages are offered as an additional subject viz. Hindi, English and Kannada. There are 28 childrens taking Hindi, 26 taking Hindi and 1

Quantitative Business Analysis, Motion Picture Industry (95 Points) The m...

Motion Picture Industry (95 Points) The motion picture industry is a competitive business. More than 50 studios produce a total of 300 to 400 new motion pictures each year, and t

Arithmetic mean, Arithmetic Mean   The process of computing Arithmetic M...

Arithmetic Mean   The process of computing Arithmetic Mean in the case of individual observations is to take the sum of the values of the variable and then divide by the number

Calculating 40th percentile in ogive graph, how do i determine the 40th per...

how do i determine the 40th percentile in an ogive graph

Regression analysis, Meaning and Definitions of Regression The dictiona...

Meaning and Definitions of Regression The dictionary meaning of regression is just opposite the meaning of progression. Progression means to move forward while regression means

Simple regression analysis, Construct your initial multivariate model by se...

Construct your initial multivariate model by selecting a dependent variable Y and two independent variables X. Clearly define what each variable represents and how this relates t

Properties of standard deviation, PROPERTIES   1. The value of stand...

PROPERTIES   1. The value of standard deviation remains the same if, in a series each of the observation is increased or decreased by a constant quantity. In statistical lan

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