Explain choosing a new piece of equipment, 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

Machine C

Fixed Costs/Month

$ 6,000.00

$ 17,000.00

$ 10,000.00

Variable Cost/Unit

$ 87.00

$ 51.00

$ 68.00

Revenue/Unit

$ 250.00

$ 250.00

$ 250.00

Capacity/Month

100

500

200

Breakeven Volume




Breakeven Utilization




Best Option Volume Range




min




max




 


Related Discussions:- Explain choosing a new piece of equipment

Line balancing, What do you understand by “line balancing”?

What do you understand by “line balancing”?

Production process, with the help of a diagram, describe the production pro...

with the help of a diagram, describe the production process.

Approaches to determining operations strategy, Approaches to Determining Op...

Approaches to Determining Operations Strategy This describes aspects of operations systems and performance measurement, including trade-offs between performance criteria. We

Explain common-size financial statement, What is a "common-size financial s...

What is a "common-size financial statement" and how would it assist you to manage your business successfully?

Describe concurrent control, What are: Concurrent Control? Feed forward Con...

What are: Concurrent Control? Feed forward Control? Feedback Control? Give an example of each.

Human resource practices which can impede customer service, Identify three ...

Identify three human resource practices that can impede customer service employees from delivering high quality service. Describe how you would modify each practice to promote high

Explain following is an inequality or equation that expresse, Which of the ...

Which of the following is an inequality or equation that expresses a restriction in a mathematical model? Decision variable Parameter Objective function Constraint N

Control charts, 1. Identify the appropriate control charts to use with each...

1. Identify the appropriate control charts to use with each scenario and state WHY . a. A hospital is trying to improve its image by changing its menu offerings. It offers a qu

Describe writing process to produce quality documents, Explain your persona...

Explain your personal writing process. What has worked for you in your effort to produce quality documents? What is your biggest writing challenge?

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