Explain production department says that to achieve, Operation Management

Assignment Help:

The sales department tells management that they can increase revenue by 20 percent by increasing sales 20 percent, but the production department says that to achieve that number of units, they will have to buy a new piece of equipment that will add $200,000 to the appropriate category. What happens when we enter those changes into our model? (Enter a new number in Enter Units that reflects a 20 percent increase in chairs sold. Increase Manufacturing Machinery to allow for the new purchase.) Clearly, a 20 percent increase in sales will increase revenue 20 percent, but what happens to profits?

a. Profits decrease 25 percent.

b. Profits increase 41 percent.

c. Profits decrease 41 percent.

d. Profits do not change


Related Discussions:- Explain production department says that to achieve

Explain three major issues from a business perspective, When you look at th...

When you look at the field of benefits as an Employer what do you find to be the three major issues from a business perspective? Now look at benefits as an Employee and identify th

Describe how investigators may go about collecting evidence, Discuss the le...

Discuss the legality of the hacker's actions as described in the "Hacking into Harvard" article. Explain how investigators may go about collecting evidence if a crime was thought t

Factors that influence the role played by operations manager, 1. Having con...

1. Having considered the changes in agriculture and manufacturing sectors in the industrial era, speculate what might happen to the service sector in the post-industrial era. What

Explain creating a constant flow of new products, Explain creating a consta...

Explain creating a constant flow of new products or continually updating and improving the current product line: Within a product planning activity, this is clear that b

Automated layout design programme, Automated Layout Design Programme or ALD...

Automated Layout Design Programme or ALDEP Here the closeness relationship between two department is used to build up layout . Computer selects randomly the first facility and

Define the amount of fabric she needs is to forecast, The percentage of val...

The percentage of value of shipments that come from materials for the average manufacturer is: a. greater than or equal to 40 and less than or equal to 49 percent. b. greater than

Difference among purchasing and supply management, What is the difference b...

What is the difference between purchasing and supply management?

What are the advantages accrue to training evaluation, What advantages accr...

What advantages accrue to training evaluation that measures return on investment (ROI)? What are some of the obstacles to implementing ROI measures, and how can they be overcome?

Explain how many mocha latte coffees would be forecast, 4.31 Coffee Palace'...

4.31 Coffee Palace's manager, Joe Felan, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Joe has gathered the fol

Explain router could not be used as a fire wall, Which of the following cou...

Which of the following could not be used as a fire wall? a. hub b. router c. server d. PC

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