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Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produced. McKinney would have annual fixed costs of $920,000 and variable costs of $13,000 per standard unit. The finished items sell for $29,000 each.
a) At what volume of output would the two locations have the same profit?
b) For what range of output would Bonham be superior (have higher profits)?
c) For what range would McKinney be superior? d) What is the relevance of break-even points for these cities?
A certain electrical harness assembly job required 35.0 minutes to complete when a skilled worker did it the first time. The job will be performed to produce 100 harnesses. a) If the learning rate is 85%, what will the time be for the 10th unit an..
Deegan is considering using overtime to increase the available assembly time. What would you advise Deegan to do regarding this option? Explain.
Anne loaned David money to start a business, which later failed. David offered to sign a promissory note for the debt to prevent Anne from instituting legal proceedings against the remaining assets of the failed business. Anne agreed, but would only ..
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Case Study: Total Quality Management in ST Microelectronics
China is on track to become the world's largest economy in coming years. Research the implications of this development and draft a document addressing the following:
Given the sales data shown on accompanying worksheet, describe a strategy to identify the best and worst selling days during the period (i.e., Monday through Sunday), the average sales by day, and to sort total monthly sales from lowest to highest.
Consider the product/service you are developing for your course project and the information in your readings on pricing. Choose one or more of the six price-setting methods your textbook discusses (markup pricing, target-return pricing, perceived-val..
For each scenario in the below table, run 30 simulations and report the overall mean service level and the estimated total cost. Does this new reorder point achieve the desired service level of .9? If so, which scenario would you recommend
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