Describe under what conditions purchase the new equipment, Operation Management

Assignment Help:

Assume that you are offered a new piece of equipment for $10,000. The equipment will produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been 2,000 units per year. Your current equipment is fully depreciated and can produce the 2,000 units per year at but at a margin of only $4.00 per unit. Should you purchase the new equipment? Under what conditions?

Related Discussions:- Describe under what conditions purchase the new equipment

Explain morale, Explain Morale. Morale: It is a measure of extent whi...

Explain Morale. Morale: It is a measure of extent which level as either high or low of voluntary cooperation illustrated by a individual or a work group and of the intensity

Explain the legal environment of hrm includes eeo, The Legal environment of...

The Legal environment of HRM includes EEO, Affirmative Action, and Americans with Disabilities Act. Discuss each explaining significance.

Management information Systems, my instructor gave a diagram depicting om p...

my instructor gave a diagram depicting om processess of a manufacturing company. from that diagram he wants me to identify specific data fields that likely compromise each of the f

Explain allowable standard deviation in the temperature, Rachel loves to ba...

Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a constant temperature. if the acceptable temperature range for making the cookies is 350 plus or

Describe costco''s inventory before it is sold, The following table shows f...

The following table shows financial data for Costco and wal mart: CostcoInventories: $3,643Sales (net): $48106COGS: $41651 Wal Mart:Inventories: $29447Sales (net): $286103COG

Explain market-driven approach to meeting customer, Provide specific exampl...

Provide specific examples of ways that Pitney Bowes has aligned diversity goals with a market-driven approach to meeting customer needs.

Compute an appropriate process capabiity ratio, The weight of nominal 1-kg ...

The weight of nominal 1-kg containers of a concentrated chemical ingrediant are shown below data. Part 0. 9475 0.9775 0.9965 1.0075 1.0180 0. 9705 0.9860 0.9975 1.0100

Find loan payment than the lease payment, Sutton Corporation, which has a z...

Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5-year, $6,000,000 bank loan to finance service equipment. The loan has an interest r

Explain modern principles of business law, I'm needing a article out of a b...

I'm needing a article out of a book, Modern Principles of Business Law, 1st Edition, 2012. This is my assignment and I dont have book, can someone please help me out, photocopy pag

Describe a diet is being prepared for the university, A diet is being prepa...

A diet is being prepared for the University of Arizona dorms. The objective is to feed the students at the least cost, but the diet must have between 1,800 and 3,600 calories. No m

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages