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

Draw a cumulative frequency polygon, The following data give the repair cos...

The following data give the repair costs (in RM) for 30 randomly selected cars from a list of cars involved in collisions. a)  By using RM 1 as the lower limit of the first

Regression, Regression line drawn as Y=C+1075x, when x was 2, and y was 239...

Regression line drawn as Y=C+1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual

Corelation regrassion, the two regrassion line will pass through the point ...

the two regrassion line will pass through the point (x,y)

Evaluate standard deviation, Consider an MBA program as a processing networ...

Consider an MBA program as a processing network where the flow unit consists of a student in the program.  Suppose the organizations that hire and promote MBAs are considered to be

Standard deviation, Standard Deviation The main drawback of the deviati...

Standard Deviation The main drawback of the deviation measures of dispersion, as discussed earlier, is that the positive and negative deviations cancel out each other. Use of t

Standard erro, practical application of standard error

practical application of standard error

Regression and anova, The first step in this case is to ensure that you ar...

The first step in this case is to ensure that you are adequately clear on the General Linear Model and its relationship to both ANOVA and regression. The distinction is approxim

Eigenvalue-based rules, Henry Kaiser suggested a rule for selecting a numbe...

Henry Kaiser suggested a rule for selecting a number of components m less than the number needed for perfect reconstruction: set m equal to the number of eigenvalues greater than I

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