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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
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Consider the following constraint and its associated binary decision variables: XA + XB + XC = 2. This constraint is an example of a mutually exclusive constraint.
What should you look for when doing a case analysis?
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steps involved in opeartion amnagemnt
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