Break-even analysis, Applied Statistics

Assignment Help:

a. How can break-even analysis be used in selecting a new plant site?

b. What are potential advantages and disadvantage of locating a production facility in foreign country instead of using domestic location?

c. A company that produces pleasure boats has decided to expand one of its line. Current facilities are insufficient to handle the increased workload, so 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 cost: fixed cost 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 variable cost of $1,000 per boat.

  i.  Find the range of output for each alternative that would yield the lowest total cost

  ii. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats?

  iii. What other factors might be considered in choosing between expansions and subcontracting?


Related Discussions:- Break-even analysis

Find probability of remaining paint free - ball duel, In a three-cornered p...

In a three-cornered paint ball duel, A, B, and C successively take shots at each other until only one of them remains paint free. Once hit, a player is out of the game and gets no

Lorenz curve , Lorenz Curve   It is a graphic method of measur...

Lorenz Curve   It is a graphic method of measuring dispersion. This curve was devised by Dr. Max o Lorenz a famous statistician.  He used this technique for wealth it i

Linear regression, Linear Regression Generally, in two mutually related...

Linear Regression Generally, in two mutually related statistical series, the regression analysis based on graphic method. Under graphic method the values  of X and Y variable

Classification of universe, Classification of Universe The universe may...

Classification of Universe The universe may be classified either on the basis of number of units and on the basis   of existence of units as is clear from the following chart :

What are the null and alternative hypotheses, Test the following claim. Id...

Test the following claim. Identify the null hypothesis, alternative hypothesis, test statistic, critical value(s), conclusion about the null hypothesis, and final conclusion that

Regression, Regression line drawn as Y=C+1075x, when x was 2, and y was 239...

Regression line drawn as Y=C+1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual

Association of attributes, In an examination 600 candidates appeared, boys ...

In an examination 600 candidates appeared, boys outnumbered girls by 16% of all candidates. number of passed candidates exceeded the number of failed candidates by 310. Boys failin

Determine the lower and upper fences, To study the physical fitness of a sa...

To study the physical fitness of a sample of 28 people, the data below was collected representing the  number of sit-ups that a person could do in one minute.      10    12

E-mail messages should be answered quickly, Do people of different age grou...

Do people of different age groups differ in their response to e-mail messages? A survey by the Cent of the Digital Future of the University of Southern California reported that 70.

Write Your Message!

Captcha
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