What is the plant best operating level

Assignment Help Operation Management
Reference no: EM132280638

A local assembly operation for a consumer appliance manufacturer has fixed costs of $5000 a day. Variable costs are about $1 per unit for materials and $3.50 per unit for labor on the first production shift. Given the shift differential (due to increased pay on the second and third shifts), increased costs of supervision, and other variable overhead costs, managers estimate the marginal cost per unit (excluding materials) to be $5.00 on the second shift and $7.25 on the third shift. The plant can produce up to 2000 units per shift. Use a spreadsheet (like the one below) to put together a worksheet. What is the plant's best operating level? How many units must be assembled before the operation makes a profit? At what volume is the plant's total profit maximized?

Reference no: EM132280638

Business and society ethics

How would you characterize the practice in which the movie theater engaged? Does this practice represent fair customer service? How are customers hurt or adversely affected? S

What is operations management

What is operations management? Why is it important? Is a good knowledge of operations management more important in service or manufacturing industries? Explain your answer.

Encounter was observed by a security guard

George was drinking at a hotel bar. He became intoxicated and left the bar around 10:oo pm. while walking through the hotel lobby, he stopped a woman seated on a couch and tri

Considering making several of its streets one-way

The city of New Berlin is considering making several of its streets one-way (see the network provided). Also, due to increased property taxes and an aggressive road developmen

Identify social factors that affect consumer buying decision

Identify and understand the social factors that affect consumer buying decisions. -  Social factors include such external influences as reference groups, opinion leaders, and

Determine the critical path of a project

Who, how and why globalization was dominated primarily by a very few European powers in the earliest stages of globalization? Why is it important to determine the critical pat

What pressures are businesses facing in modern society

Find two examples of businesses existing between 1900-1950 that were unethical in their practices. Identify the companies and describe what they did that was unethical. Use at

Difference between an aggregate and a straight deductible

The basic parts of an insurance contract are often summarized with the acronym ______________________. Please briefly discuss four of the five parts of a standard insurance po


Write a Review

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