Explain chooses to refurbish the equipment, Operation Management

Assignment Help:

Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) refurbish the old equipment at a cost of $800, (b) make major modifications at the cost of $1,100, or (c) purchase new equipment at a net cost of $1800. If the firm chooses to refurbish the equipment, materials and labour will be 1.10 per board. If it chooses to make modifications, materials and labour will be $0.70 per board. If it buys new equipment, variable costs are estimated to be $0.40 per board. 1) Graph the three total cost lines on the same chart. 2)Which alternative should Ski Boards, Inc., choose if it thinks it can sell more than 3000 boards 3) which alternative should the firm use if it thinks the market for boards will be between 1000 and 2000


Related Discussions:- Explain chooses to refurbish the equipment

Explain how can mexico production help us, How can Mexico production help U...

How can Mexico production help US manufacturers bring back some/most? of their Asia offshoring activities?

Fitzgerald model - performance measures, Fitzgerald Model - Performance Mea...

Fitzgerald Model - Performance Measures The Fitzgerald model is a performance measurement system specifically for service industry. Fitzgerald (1991) describes a feedback/feed

Compute minimum cost service rate, Consider mean arrival rate is 1 customer...

Consider mean arrival rate is 1 customer every 4 mins and mean service time is 5/2 mins. If waiting cost is $5 per unit per min and cost of serviceing one unit is $4. Find minimum

Explain system for evaluating the productivity, As the administrative manag...

As the administrative manager in a law office, you have been asked to develop a system for evaluating the productivity of the 15 lawyers in the office. What difficulties are you go

Explain how this can affect people''s sense of responsibility, In the morde...

In the mordern world most people work in organisations. Describe how this can affect people's sense of responsibility and the morality of their conduct.

Define the periodic inventory control systems, Define the periodic inventor...

Define the periodic inventory control systems. Periodic (or bin) Inventory Control Systems: Stock levels are reviewed at pre-found intervals of time and an order is posit

Ppc in mass and flow production system, PPC in Mass and Flow Production Sys...

PPC in Mass and Flow Production System Continuous  production  is the  specialized  manufacturing  of identical  articles on which  the equipment  is  fully  engaged. Continuo

Feedback - advantages of statistical process control, Feedback - Advantages...

Feedback - Advantages of Statistical Process Control  SPC is a clear example of negative-feedback system control, providing management with timely information on the state of

Compute the degrees of freedom associated, In each of the following situati...

In each of the following situations, distinguish which statistical analysis you would conduct and which appropriate test or test statistic should be used. • Consumer preferences

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