Manufactures a product currently using two machines

Assignment Help Operation Management
Reference no: EM131725006

A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. What is the breakeven point?

A company manufactures a product currently using two machines. Each machine averages 225 units of the product per day. However, annual demand is forecasted to reach 150000 units of product in year 2013. How many machines in total should the company plan to use in order to be able to satisfy demand in the future? Assume 240 workdays per year.

Reference no: EM131725006

Questions Cloud

Compute four-month moving average forecast of demand : Compute a 4-month moving average forecast of demand for December 2000 and January 2001.
Describe what is included in these roll up costs : Both sides must calculate and consider the entire costs of a per hour wage increase. Describe what is included in these roll up costs.
What are the four principles of recurring connections : What should you look for in a mentor before you approach one? What are the four principles of recurring connections?
Department be located on perrow technology framework : Where would your university or college department be located on Perrow’s technology framework?
Manufactures a product currently using two machines : A company manufactures a product currently using two machines.
Problems in manufacturing and customer service areas : On which dimensions of quality does Dittenhoefer’s compete? How are these dimensions being threatened by problems in manufacturing and customer service areas?
New plant to absorb the backlog of demand : A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists.
Why is it important for individuals to be media literate : What is media literacy and why is it important for individuals to be media literate? How can both kids and adults benefit from media literacy?
Sample of relevant internal and external stakeholders : He would like to design and conduct a survey study with a sample of relevant internal and external stakeholders.

Reviews

Write a Review

Operation Management Questions & Answers

  What are the key concepts that underlie the construction

What are the key concepts that underlie the construction and interpretation of control charts?

  Advantages-disadvantages of individuals as innovators

What are some of the advantages and disadvantages of individuals as innovators, firms as innovators,

  What is the function of information technology department

What is the function of the information technology department at many workplaces. What is your opinion of the new law in Korea, the antigraft law. See the article in annoucements if not sure about the law.

  Hoovers industry index nd explains aspects the tv broadcast

hoovers industry index n.d. describes aspects the tv broadcast and cable networks industry. this industry has seen

  What is a wide style range?

What is a wide style range? If you have a wide style range, are you necessarily a good situational manager? Why, or why not?

  Requirements of paper include cover sheet

The research paper and the requirements of this paper include a cover sheet (course title and name, paper title, student name and student ID), a table of contents, 5-7 numbered pages of text, and a reference page. The research paper requires at le..

  According to poisson distribution

Trucks arrive at a grocery store at a rate of about 3 per hour according to a Poisson distribution. The worker who is in charge of unloading the trucks takes about 15 minutes to unload a truck. Unloading time is approximately exponentially distribute..

  Distribution decision in a push-based supply chain

What is generally NOT true about production and distribution decision in a push-based supply chain?

  How are the epidemiologic planning model

Why does an HCO plan the sizes of its various components? What are the implications of too big and too small? Why is the final decision reserved for the governing board? How are the Epidemiologic Planning Model and the Precede-Proceed Model similar? ..

  Makes two different types of baseball gloves

Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a catcher's model. The firm has 600 hours of production time available in its cutting and sewing department, 300 hours available in its finishing depar..

  Product mix is product assortment

A Product mix is a product assortment; Let's analyze the use of the word Length as opposed to Breadth. Are they really the same thing? Which term do you think captures the essence of its true meaning?

  Explain the importance of the matching concept

Smith Company 31-Dec-15 Trial Balance (accounts in alphabetical order) Debit Credit Accounts payable 67,000 Accounts receivable 24,500 Cash 50,000 Common stock 10,000 Depreciation expense 24,350 Cost of goods sold 234,000 Equipment (net of depreciati..

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