Compute the breakeven volume, Operation Management

Assignment Help:

The following table shows the critical factors in a company's decision on choosing a new piece of equipment. Calculate the breakeven volume and utilization for each option and then find the range of volumes for which each option is the best decision.


Machine A

Machine B

Fixed Costs/Month

$ 20,000.00

$ 10,000.00

Variable Cost/Unit

$ 3.90

$ 4.25

Revenue/Unit

$ 21.00

$ 19.00

Capacity/Month

2500

1000

Breakeven Volume



Breakeven Utilization



Best Option Volume Range:



min



max




Related Discussions:- Compute the breakeven volume

Describe what will be the duration of management conference, What will be t...

What will be the duration of a management conference duration?

Explain what are the different types of strategies, What are the different ...

What are the different types of strategies? What are the differences among these strategies? How do you determine which type of strategy is most appropriate for your organization?

Compare all partial factor and total factor productivity, Consider - a smal...

Consider - a small manufacturing company which produces high quality furniture has provided the following data: Compare all partial factor and total factor productivity for

Examine netflix''s current strategy, Evaluate Netflix's current strategy an...

Evaluate Netflix's current strategy and determine if the strategy is sustainable. Identify a Netflix strength may be leveraged in the market place to ensure a competitive advantage

Game theory, Consider the following parlor game to be played between two pl...

Consider the following parlor game to be played between two players. Each player begins with three chips: one red, one white, and one blue. Each chip can be used only once. To beg

Explain inhumane labor standards, A few years ago, several U.S. retailers w...

A few years ago, several U.S. retailers were sued in Los Angeles courts for human rights abuses associates with contract manufactures located in the Marianas Islands, a territory o

Proposed solutions to combat conflicts of interest, Three major solutions h...

Three major solutions have been proposed to combat the medical industry conflicts of interest detailed above in this paper. The first solution is embodied in the Physician Payments

Explain who are gmcs target market, What programs does GMC Company have for...

What programs does GMC Company have for the less advantage and children? What grade would you give this program and why? Who are GMCs target market, age, gender, income and race

Explain ethical for employers to use information technologie, Is it ethical...

Is it ethical for employers to use information technologies to extend work into employees home lives?

Find what is the stock worth today, Investor G. Loeb owns a 5-year, $1000 b...

Investor G. Loeb owns a 5-year, $1000 bond with a 5% coupon. If the yield to maturity on similar bonds is currently 10%, what is Mr. Loeb's bond worth today? A security analyst

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