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A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $17.
a. Determine each alternative’s break-even point in units. (Round your answer to the nearest whole amount.)
QBEP,A ___units
QBEP,B ___units
b. At what volume of output would the two alternatives yield the same profit? (Round your answer to the nearest whole amount.)
Profit _____units
c. If expected annual demand is 14,000 units, which alternative would yield the higher profit?
Higher ______profit
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deciding among two or more competing plant location options, various decision factors which can typically be characterized as exogenous - in a company's external environment - or endogenous - internal to the company
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Write a Two Page paper on forecasting using quantitative and qualitative techniques and procedures that are most appropriate for a scenario of your choice. Select one qualitative and one quantitative method and provide a scenario of when and how t..
Jim has been employed at Gold Key Realty at a salary of $2,000 per month during the past year. Because Jim is considered to be a top salesman, the manager of Gold Key is offering him one of three salary plans for the next year.
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Process Analysis and Charting
Which of the following characteristics would make an activity an unattractive candidate for crashing?
Is the company currently capable of meeting the industry group's specification standards if the company's minimum Cpk is 1.10? Explain. If it is not, explain if it is due to a drifting of the mean or too much variability. Explain.
a) Construct the appropriate control chart from the above data using a 3-standard deviation limit.
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