Estimate the minimum sales quantity

Assignment Help Operation Management

Reference no: EM13109331

Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has two choices: (A) make major modifications at a fixed cost of $26,000, or (B) purchase new equipment at a net fixed cost of $63,000. If the firm chooses to make modifications, variable materials and labor will be $27.0 per board. If it buys new equipment, variable costs are estimated to be $17.5 per board.

What is the minimum sales quantity that would justify the purchase of new equipment? (Specify as a whole number by rounding)

Reference no: EM13109331

Questions Cloud

Explain adjusted balance afterward the first payment : Sandra Gloy borrowed $5,000 on a 120 day 5 percent note. Sandra paid $500 toward the note on day 40. On day 90 she paid an additional $500.

Illustrate types of benefits packages are most attractive : Illustrate what types of benefits packages are most attractive to workers at different stages in their career? At a minimum, examine the needs of younger workers, middle-aged workers and workers nearing retirement.

Research division by using dependent or independent samples : Data are recorded on effects of each drug. Is research division by using dependent or independent samples? Explain why?

Compute the equilibrium partial pressures of carbon dioxide : the total pressure of the system is found to be 4.50 atm At 700 degrees celsius. compute the equilibrium partial pressures of carbon dioxide and carbon monoxide if the equilbrium constant Kp = 1.52,

Estimate the minimum sales quantity : Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has two choices make major modifications at a fixed cost of $26,000.

Determining hypothesis testing of mean : Historically the average age of European soccer players is reported as 26 years with a standard deviation of 4 years. A random sample of 81 European professional soccer players has an average age of 27 years.

What might you conclude about the structures : What might you conclude about the structures of these 3 (X,Y,Z)compounds?

Explain how many boxes lettuce should supermarket purchase : Past history says that tomorrows demand for lettuce averages 250 boxes with a standard deviation of 34 boxes. Explain how many boxes of lettuce should the supermarket purchase tomorrow?

What are three factors that influence the planning process : What are three factors that influence the planning process? How do these factors influence the planning process?

User Account

All Pages