Compute the breakeven volume, Operation Management

Assignment Help:

The following table shows the critical factors in a company's decision on choosing a new piece of equipment. Calculate the breakeven volume and utilization for each option and then find the range of volumes for which each option is the best decision.


Machine A

Machine B

Fixed Costs/Month

$ 20,000.00

$ 10,000.00

Variable Cost/Unit

$ 3.90

$ 4.25

Revenue/Unit

$ 21.00

$ 19.00

Capacity/Month

2500

1000

Breakeven Volume



Breakeven Utilization



Best Option Volume Range:



min



max




Related Discussions:- Compute the breakeven volume

Explain business resilience case example cvp france, Which behaviours, thin...

Which behaviours, thinking approaches, emotional stances, decisions, and business management actions can be found in the two readings that pertain to adaptability, resilience, and/

Explain an environmental scan or swot analysis, Conduct an environmental sc...

Conduct an environmental scan or SWOT analysis of Azul Linhas Aéreas Brasileiras's current reality and recommend whether the company's current strategy is poised to succeed

Explain problems can you identify with the current layout, 1. Develop an lD...

1. Develop an lD score for the current layout. What problems can you identify with the current layout? 2. Use trial and error to come up with a better layout that lowers the lD

Explain what is the efficiency, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE

What is the safety stock and rop, Chicago's Hard Rock Hotel distributes a m...

Chicago's Hard Rock Hotel distributes a mean of 1000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of

Explain acronym ltpd, Explain acronym LTPD. Ans: The acronym LTPD is...

Explain acronym LTPD. Ans: The acronym LTPD is Lot Tolerance Percent Defective.

Find breakeven as well as target profit volume, Happy Ten Produces sports s...

Happy Ten Produces sports socks. The company has fixed expenses of $80,000 and variable expenses of $0.80 per package. Each package sells for $1.60. 1. Compute the contribution mar

State the term capacity, State the term capacity. Capacity: It is...

State the term capacity. Capacity: It is the capability of an operation to do and produce. The maximum restriction to the volume of product or service an organisation can

Explain hrm professional to become the strategic business, What competencie...

What competencies do you feel are required of the HRM professional to become the strategic business partner and assist in leading an organization? Be sure to include scholarly s

Innovation and learning perspective - performance measures, Innovation and ...

Innovation and Learning Perspective - Performance Measures In this perspective, the company emphasises the design and application of business management initiatives that foste

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