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

Calculate and interpret the effect size, Problem 1 Do male and female s...

Problem 1 Do male and female students differ significantly in regard to their average math achievement scores, grades in high school, and visualization test scores? Can you con

Regression model, Using a random sample of 670 individuals for the populati...

Using a random sample of 670 individuals for the population of people in the workforce in 1976, we want to estimate the impact of education on wages. Let wage denote hourly wage in

Professional Counselor, A researcher hypothesized that the pulse rates of ...

A researcher hypothesized that the pulse rates of long-distance athletes differ from those of other athletes. He believed that the runners’ pulses would be slower. He obtained a ra

Solve linear programming problem using the simplex method, Question: (a...

Question: (a) Shale Oil, located in the island of Aruba, has a capacity of 600,000 barrels of crude oil per day.  The final products from the refinery include two types of unle

Standard deviation and variance, Explanation of standard deviation and vari...

Explanation of standard deviation and variance Describe the importance of standard deviation and variance, what they calculate and why they are required. Importance of char

Perform a dimensional analysis for the quantities, Show how the Normal bin ...

Show how the Normal bin width rule can be modi ed if f is skewed or kurtotic. Examine the eff ect of bimodality. Compare your rules to Doane's (1976) extensions of Sturges' rule.

Quantitative and qualitative methods for forecasting sales, OmegaPlus Pty...

OmegaPlus Pty.Ltd. is a chain of Health Food stores operating in Australia: with 12 stores across Sydney, Melbourne and Brisbane. OmegaPlus has recently appointed a new CEO: San

Its a portfolio assignment, i m doing MBA in singapore and i want a good wo...

i m doing MBA in singapore and i want a good work. i want a data for 200 observations and then answers for some questions. and i need the data to be approved by our professor first

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