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A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $ 250,000 per year, and variable costs would be $ 500 per boat. Subcontracting would involve a cost per boat of $ 2,500, and expansion would require an annual fixed cost of $ 50,000 and a variable cost of $ 1,000 per boat.a. Find the range of output for each alternative that would yield the lowest total cost.b. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats?c. What other factors might be considered in choosing between expansion and subcontracting?
What is the productivity measure of "units of output per dollar of input" averaged during the 3 year period? (Show calculations).
Suppose you are employed in an entry-level management position in a large bank. What specific considerations (contingencies) would you identify of sending an e-mail versus talking in person to someone else in a bank?
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bloomsday outfitters produces T-shirts for road races.They need to acquire some new stamping machine to produces 30,000 good T-shirts per
Identify the typical processes in manufacturing firms. Discuss how the new product development process interacts with the traditional function in the firm
A manager has learned that annual profits from four alternatives being considered for solving a capacity problem are projected to be $15,000 for A, $30,000 for B, $45,000 for C, and $60,000 for
A produce distributor uses 710 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once..
Describe the organizational structure of your selected organization. Compare and contrast that structure with two different organizational structures.
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Annual usage of soap is 4500 gallons. The car wash is open 360 days a year. Assume that daily usage is normal, and that it has a standard deviation of 2 gallons per day.
As the production planner for Scott Sampson Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle..
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