Quality product, Strategic Management

Assignment Help:

An electronics firm is presently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.00 per unit.  Fixed costs are$14,000 per month.  present volume is 30,000 units per month.  The firm wants to better the product quality by adding a new piece of equipment at an additional fixed cost of $6,000 a month.  Variable cost would enhance to $0.60 a unit but volume should jump to 50,000 units a month due to improved productivity.  Though the new product is of a higher quality, the firm intends to stay with the selling price of $1.00 per unit (for competitive purposes).

(a)    Should the firm buy the latest equipment?

(b)    The firm is now considering stepping the new volume to 45,000 units a month to make even better quality products and enhance the selling price to $1.10 a unit.  Under these circumstances, should the company buy the latest equipment and enhance the selling price?


Related Discussions:- Quality product

Develop a performance measurement system, Q. Recommended process to develop...

Q. Recommended process to develop a performance measurement system  1. Senior management need to determine a clear vision of the change that will be required and demonstrate c

Animal processing, what is HACCP and benefits in food industry

what is HACCP and benefits in food industry

Strategic management process, Have you ever been involved in an effort to i...

Have you ever been involved in an effort to introduce a new product, service or technology in an organization? If so, share your experiences with the class. Provide the class wi

How to get assignment service, Will you please mention me assignment help s...

Will you please mention me assignment help service about to?

How to solve complex econometric question, I have problem in subject econom...

I have problem in subject econometrics, how i get solved questions in econometrics.

Knowledge management techniques, Bert's Bonsai sells Bonsai plants, tools a...

Bert's Bonsai sells Bonsai plants, tools and materials to cultivate them, and literature in book and magazine form. An early adopter of electronic records, they are still happily u

Research and materials analysis, Using a combination of online and paper re...

Using a combination of online and paper resources, find out as much as you can about the seven materials listed below.  In particular, consider the QUANTITATIVE values for their pr

How cost-leadership make use of ict, Question 1: (a) Explain a framewor...

Question 1: (a) Explain a framework for a company to manage its application portfolio. (b) Apply the application portfolio concept to show the different applications for a

Merits of economic value added, Merits of economic value added (EVA): -...

Merits of economic value added (EVA): -  Cash not accounting based measure therefore less distorted for performance measurement. -  Consistent or goal congruence with profit

Discuss the pertinence and relevance of the ansoff matrix, Question 1: ...

Question 1: (i) Why should stategic issues involve all stakeholders for a product or/and service? (ii) What are the objectives of strategic formulation and implementation

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