Define the break-even point for each range, Operation Management

Assignment Help:

A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2000 per day, while two machines will result in a fixed cost of $3800 per day. Variable costs will be $20 per customer, and revenue will be $45 per customer.

A. Determine the break-even point for each range.

B. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?

Related Discussions:- Define the break-even point for each range

Explain how survey have been more useful, 1. Using a cause and effect diagr...

1. Using a cause and effect diagram (Fish-bone chart), Scatter Diagram, flowchart or Statistical Process control chart, analyze the data and present conclusions. 2. How could th

Explain the ethics of continuing to do business, Assume you are a manager o...

Assume you are a manager of a large heavy equipment manufacturing company. Your company currently outsources the manufacturing of a specialized piece of equipment to a firm in anot

Explain what are four significant pieces of legislation, What are four sign...

What are four significant pieces of legislation that evolved from the civil rights act of 1964

Explain what is the workstation cycle time, 1. Some tasks and the order in ...

1. Some tasks and the order in which they must be performed according to their assembly requirements. These are to be combined into workstations to create an assembly line. The

Explain accounting for health care organizations, What are some ways in whi...

What are some ways in which accounting for health care organizations (HCOs), especially not-for-profit (NFP) ones, tends to differ from accounting in other industries?

Facility location importance, what is the importance of facility location ?...

what is the importance of facility location ?

Explain disadvantages of division of labour, Explain disadvantages of Divis...

Explain disadvantages of Division of Labour. (i) Division of labour provide rise to loss of craftsmanship, all workers become Machine -minders and nothing else. (ii) Along w

Short term financial conditions of improving productivity, What are the lon...

What are the long and short term financial consequences of improving productivity in a business?

Describe approaches to communication as related to managers, Clampitt prese...

Clampitt presented a communication model for his first 2 approaches to communication as related to managers; Arrow & Circuit. What communication model best describes his Dance Appr

Determine the appropriate sample size, Determine the Appropriate Sample Siz...

Determine the Appropriate Sample Size The following work sampling data was collected from observing a retail assistant: Activity

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages