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

Answer the this question as I found on the google search, Ask questioAn ups...

Ask questioAn upscale home fixture supplier has four locations. Each location manages its ordering independently. The specialized lighting fixture sells for $300 and sales are on a

Explain six sigma principles to health care organizations, Type two savings...

Type two savings are the least likely to occur when applying Six Sigma principles to health care organizations

Mathematical analysis of the normal distribution curve, Mathematical Analys...

Mathematical Analysis of the Normal Distribution Curve Mathematical analysis of the normal distribution curve has produced data tables which provide population statistics in r

Explain what is cross-functional decision making process, What is cross-fun...

What is cross-functional decision making process, strategy model, and supply chain?

Explain various models and treatment of mental illness, I am listing three ...

I am listing three different category's I need cited and referenced: 1). Alternative Medicine,2). Human Service Models. 3). Comparing the Various Models and Treatment of Mental Ill

Compute productivity indices and compare rises productivity, 1. Productivit...

1. Productivity is considered by many to be the essence of operations management - suggest reasons to support this assertion.  2. Using the figures in the table, if we use 2000

How global businesses subscribe to a global code of conduct, Do you think g...

Do you think global businesses would be willing to subscribe to a global code of conduct?

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