Explain insufficient to handle the increased workload, Operation Management

Assignment Help:

A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities).

Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $250,000 per year, and variable costs would be $500 per boat. Subcontracting would involve a cost per boat of $2,500, and expansion would require an annual fixed cost of $50,000 and a variable cost of $1,000 per boat.

a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.)


Related Discussions:- Explain insufficient to handle the increased workload

Explain an environmental scan or swot analysis, Conduct an environmental sc...

Conduct an environmental scan or SWOT analysis of Azul Linhas Aéreas Brasileiras's current reality and recommend whether the company's current strategy is poised to succeed

Explain challenges that often plague entrepreneurs, There are two "most com...

There are two "most common causes" of business failure. What are those two causes and, more importantly, how can an entrepreneur overcome these two challenges that often plague ent

What are long-term, What are long-term, departmental and Non-Economic decis...

What are long-term, departmental and Non-Economic decisions? If long term decisions, the time period covered is long and the risk included is more. Departmental decisions rela

Explain student aid and scholarships office, You have just been notified by...

You have just been notified by the Student Aid and Scholarships Office that you would receive a regents scholarship of $2000 for the coming academic year. Furthermore, your applica

Explain factors that influence an organizational structure, Discuss at leas...

Discuss at least three factors that influence how an mnc selects an organizational structure

GAME THEORY, In a rectangular game, pay-off matrix of player A is as follow...

In a rectangular game, pay-off matrix of player A is as follows: Player B B1 B2 Player A A1 A2 i) Solve the game. ii) Write down the pay-off matrix of B and then, solve the g

Compute the appropriate loan table, You just took a $20,000, eight-year loa...

You just took a $20,000, eight-year loan. Payments at the end of each year are flat (equal in every year) at an interest rate of 8 percent. Calculate the appropriate loan table, sh

Why competitive priorities are important, Androsia manufactures batik fabri...

Androsia manufactures batik fabrics in a labor intensive, low-volume process on the island of Andros. The Hershey tour shows how cocoa beans are processed into chocolate using a hi

Explain promote the transfer of new products across nations, 1. What trigge...

1. What triggered the new product strategy at Minnesota Bio labs? 2. What prediction would you make for the success of getting the country general managers in Europe and Japan to a

Calculate first''s rop, First Printing has contracts with legal firms in Sa...

First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 12,500 pages of documents. The lead time for paper

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