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

Competitive priorties, explain basic competitive priorities considered whil...

explain basic competitive priorities considered while formulating operations strategy by a firm?

Explain overall balloonong of information available free, Think back to a t...

Think back to a time when you wondered about a practice or structure within an organization. If you cannot remember such a situation from your own work history, you may write about

Illustrate example of queuing theory in operation management, Illustrate th...

Illustrate the examples of the queuing theory in operation management? Example of Queuing theory, a mathematical study of the formation of waiting queues or lines (physical or

View of the cell used by jobs - process design, View of the Cell Used By Jo...

View of the Cell Used By Jobs - Process Design This figure gives a close-up view of the cell used by Jobs 1 and 2. Notice that neither of the jobs uses all of the processes in

Determine the factors and reasons for dumping, From the case study, determi...

From the case study, determine these factors: (a) people or institution doing the dumping, (b) reasons for dumping, (c) places where the dumping takes place, or (d) the product, in

Explain technique to develop a forecast for the expected, air travel on Mou...

air travel on Mountain Airlines for the past 18 weeks was: Week Passengers 1 404 2 410 3 420 4 415 5 412 6 419 7 424 8 433 9 438 10 440 11 446 12 451 13 455 14 460 15 466 16 474 17

Explain project life cycle differ from a product life cycle, I asked the wr...

I asked the wrong question last time. I asked it wrong. How does a project life cycle differ from a product life cycle?

Define materials requirements planning, Describe a consequence of not proce...

Describe a consequence of not processing MRP (Materials Requirements Planning) records in a timely fashion.

Explain personal information that is used to steal identity, Consider your ...

Consider your daily activities - as a consumer, student, parent, friend, homeowner or renter, car driver, employee etc. - and think about the ways that you are involved in transact

Explain personality traits affect management and leadership, Your managemen...

Your management team has been retained by a senior manager who is concerned about the effectiveness of his managers and their leadership abilities. He would like you to develop a t

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