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

Explain evaluating corporate contributions, In one paragraph supported by y...

In one paragraph supported by your text and other research, describe the criteria you would use if you were a manager charged with evaluating corporate contributions to decide whet

Describe the mission- vision- values- and goals, The formal strategic plann...

The formal strategic planning process has five main steps. We are going to analyze at the first step involving corporate mission, vision, values and goals in the context of the com

Explain why has walmart tended to improve performance, Why has Walmart tend...

Why has Walmart tended to improve performance while other retail outlets have been suffering financially?

Describe seminar for golden age to break even, Golden age retirement planne...

Golden age retirement planners specializes in providing financial advice for people planning for a comfortable retirement. The company offers seminars on the important topic of ret

Explain what is the revised forecast for the second quarter, Q. 4. A two ye...

Q. 4. A two year sales history by quarter for a seasonal product is given below. Sales Quarter First Year Second Year 1 30 42 2 48 58 3 60 74 4 35 44 a) Using

Explain disadvantages of the open innovation approach, How might businesses...

How might businesses use the Internet to identify untapped customer needs through open innovation? What do you see as the major advantages and disadvantages of the open innovation

Stepping stone method, Stepping Stone Method: Continue the above ex...

Stepping Stone Method: Continue the above example containing the initial basic feasible solution obtained by least cost rule. In this there six empty cell :91,1) )1

Evolution of the supply chain, Evolution of the supply chain  Procurem...

Evolution of the supply chain  Procurement, materials management and logistics management activities can be combined by the integration of software packages such as ERP. For m

Explain barriers to successful communication, Explain barriers to successfu...

Explain barriers to successful communication. Barriers to Successful Communication: A barrier to successful communication does not allow the transmission of correct and full

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