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C&A currently has fixed costs of $200 per month and variable cost of $40 per unit for its production operations. They are considering the purchase of a new equipment that will raise the fixed costs to $500 per month but reduce the variable cost to $30 per unit. For what range of output would the new equipment be purchased?
Less than 40
More than 40
More than 30
Less than 30
Equal to 30
The maintenance crew at Katz Electronics Corporation
The tennis club has a number of inventories it must manage and must minimize all its expenses to stay in business. For each inventor, describe a goo management policy or system:
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A company is considering a new venture. This venture will require the purchase of $550,000 of equipment (which will be depreciated straight-line to zero over the life of the project and will have no salvage value)
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McDonalds traditional process to make-to-stock; Wendy's has a make-to-order and burger king has a process which is a hybrid of the other two. Discuss the advantages and disadvantages of each of these approaches.
Last summer, he tried a new fertilizer that promised a 50% increase in yield. He harvested 1900 pounds. Did the fertilizer live up to its promise?
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