Explain what is the minimum sales quantity, Operation Management

Assignment Help:

Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has two choices: (A) make major modifications at a fixed cost of $26,000, or (B) purchase new equipment at a net fixed cost of $63,000. If the firm chooses to make modifications, variable materials and labour will be $27.0 per board. If it buys new equipment, variable costs are estimated to be $17.5 per board.

What is the minimum sales quantity that would justify the purchase of new equipment?


Related Discussions:- Explain what is the minimum sales quantity

Describe what is the theoretical workstations, The table details the task r...

The table details the task required for an industry to manufacture a fully portable vacuum cleaner. The times are in minutes. Demand forecasted a need to manufacture in a cycle of

Explain who is most likely to win the business, A Chicago-based manufacture...

A Chicago-based manufacturer is looking for someone to handle its shipments to the West Coast. In order to evaluate potential transportation providers, the manufacturer has develop

Explain effects of indiscipline, Explain effects of indiscipline. Effe...

Explain effects of indiscipline. Effects of Indiscipline: The indiscipline in industry brings in exact adverse effects. These are as given here:- a) Increase in the give

Explain growth and globalization strategies, Given Pitney Bowes' growth and...

Given Pitney Bowes' growth and globalization strategies, analyze the forces for and against maintaining an organizational culture that supports diversity as a business imperative

Explain conscience in spite of the consequences, Suggest some reasons why a...

Suggest some reasons why a person may go against his /her conscience in spite of the consequences. Provide examples with your response.

Explain the two main types of financing, How have globalization and informa...

How have globalization and information technology created new opportunities for entrepreneurs? Describe current demographic trends that suggest new goods and services for entrepren

What are the primary external organizational considerations, Do you think t...

Do you think these primary external organizational considerations are the same across all industries, or do different industries (like manufacturing vs. health care) have different

Explain implementing large database systems and data, What issues can organ...

What issues can organizations experience when implementing large database systems and data warehouses? What best practices would you recommend to an organization to mitigate these

Performance management, Performance Management Discuss Performance Ma...

Performance Management Discuss Performance Management in the context of the identifying the relevant School of Management Theory.  Identify positives and negatives in the app

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