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

Point rating method, Point  Rating Method In  selecting  a site  of l...

Point  Rating Method In  selecting  a site  of location companies  have several  objectives, but  not  all are  of equal  importance. The relative weight a company assigns to

Explain what should johnson estimate time and parts costs, Johnson Industri...

Johnson Industries received a contract to develop and produce four high intensity long distance receiver/transmitters for cellular telephones. The first took 2000 labour hours, and

Production and Operation Management, What do you understand by “line balanc...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Describe culture and values and ethics, Discuss culture, values, ethics, an...

Discuss culture, values, ethics, and other such elements that lead to differences in social culture; 2) Explain the business and economic implications of differences in culture and

What helps ups to achieve its business objective, How the web site helps UP...

How the web site helps UPS to achieve its business objective?

Explain business law deals with criminal law, Business law deals with crimi...

Business law deals with criminal law, tort law and contract law. Explain and illustrate each field and show how each field of law can affect a business.

Describe maintain service quality in the expanded markets, Evaluate whether...

Evaluate whether or not Shangri La Hotel's heavy investment in employee development yields a profitable return to the company. Evaluate Shangri La Hotel at maintain service quality

Confidence interval of the population mean life, A sample of 36 "AA" Alkali...

A sample of 36 "AA" Alkaline batteries has a mean life of 6 months. The standard deviation of the population is known to be 3 months. Find the 95% confidence interval of the popual

Explain factors contributing to competitive rivalry include, Factors contri...

Factors contributing to competitive rivalry include A) The corporate attitudes toward marketing strategies B) Nature of the product and homogeneity of market C) The suppor

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