Reference no: EM131210849
Q1) An executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?
Utilization =
Efficiency =
Q2) A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain.
Q3) Jason Smith, the owner of PizzaHut restaurant near JSU, is considering a new oven in which to bake the restaurant's signature dish, vegetarian pizza. Oven type A can handle 25 pizzas an hour. The fixed costs associated with oven A is $22,000 and the variable costs are $2.5 per pizza. Oven type B is larger and can handle 40 pizzas an hour. The fixed costs with oven B are $35,000 and variable costs are $1.5 per pizza. The both pizzas sell for $15 each.
a) What is the break-even point for each oven?
b) If the owner expects to sell 9,500 pizza, which oven should the owner purchase?
c) If the owner expects to sell 13,700 pizza, which oven should the owner purchase?
d) At what volume should the owner switch ovens?
Q4) The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable costs follow. Since the plant ships nationwide, revenue is assumed the same regardless of plant location. Identify the range over which each location is best.
|
Location
|
Costs
|
A
|
B
|
C
|
Fixed
|
$700,000
|
$1,000,000
|
$1,100,000
|
Variable
|
$28
|
$18
|
$20
|
Step 1. Formulate Total Cost (TC) functions for each option.
Step 2. Draw a graph with the total cost functions.
Step 3. Compute the cross-over points.
Step 4. Analyze the cases and determine the best option for specific quantity ranges. (Please state which option is preferred in a quantity range, and which option is never preferred.)
Q5) The following flow chart shows an inspection process to receive goods in a warehouse.
(a) Where is a bottleneck process?
(b) What is the bottleneck time?
(c) What is the throughput time for good items?
(d) What is the throughput time for wrong orders?
(e) What is the throughput time for poor quality items?
(f) If we get 15 orders in an 8 hour day, what would the utilization rate be at inspection station?
Q6) Montegut Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $2.00 per unit per year, and setup cost is $200.00.
(a) What is the Economic Production Quantity (EPQ)?
(b) What is the maximum inventory level?
(c) How many order cycles (= production runs) are there per year?
(d) What are the total annual holding and setup costs?
What was the relative risk of acquiring TB
: What was the incidence rate of TB in the two religion groups - What was the relative risk of acquiring TB in the religion group A relative to religion group B?
|
Generate sql statements to create the final database
: Use Designview to check your answers to exercises that call for computing closures, testing normal forms, decomposing into a desired normal form, and so on.
|
Describe the challenges minorities face in the workplace
: Describe in depth the three kinds of influential leadership. In what significant way does transformational leadership differ from transactional leadership? Compare and contrast the three. Give an example of each one either from your experience,..
|
Explain the effects of the shift from no trade to free trade
: Show graphically and explain the effects of the shift from no trade to free trade on surpluses in each country. Indicate the net national gain or loss from free trade for each country.
|
What is the economic production quantity
: Montegut Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $2.00 per unit per year, and setup cost is $200.00. What is the Econo..
|
Do you agree or disagree with given statement
: "According to Ricardo's analysis, a country exports any good whose production requires fewer labor hours per unit than the labor hours per unit needed to produce the good in the foreign country.- Do you agree or disagree? Why?
|
Evaluate the articles as they relate to what was learned
: The assignment requires the use of the Library/Internet research to locate and study written articles on tax evasion in regards to financial accounting. The student is required to critique, analyze, and evaluate the articles as they relate to what..
|
Imports are the good thing about international trade
: "For my country, imports are the good thing about international trade, whereas exports are more like the necessary evil."- Do you agree or disagree? Why?
|
Do you agree or disagree with given characterization
: "Mercantilism recommends that a country should limit its exports, so that more of the otherwise-exportable products are instead available for local consumption." - Do you agree or disagree with this characterization of mercantilism's message?
|