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 what is its cost of common equity, The earnings, dividends, and com...

The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 8% per year in the future. Carpetto's common stock sells for $27.75 per share,

Compute sample size to confirm or not the findings, If a pilot test reveale...

If a pilot test revealed 45% perceived poor service quality, and we decide the interval range is + 10 percent with a 95% confidence level, what is the calculated sample size to con

Define hr technology impact the human side of human resource, Technology ha...

Technology has changed the role and some functions of HR. Have these changes resulted in HR losing sight of its role towards employee relations and support? While companies are see

Why is environmental analysis is vital for an organization, Q1. Why is envi...

Q1. Why is environmental analysis important for an organization? Q2. Write a double-spaced essay of between 750-1000 words on the value of business process improvement to an ind

Explain project management profession, Microsoft Project, identify the reso...

Microsoft Project, identify the resource that caught your interest and estimate its usefulness to the project management profession.

Illustrate your discussion using a service organisation, Question 1: "Y...

Question 1: "Yield management guides the decision of how to allocate undifferentiated units of capacity to available demand in such a way as to maximize profit or revenue." Cri

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?

Tasks, Tasks, Predecessors and Times - Process Design The first s...

Tasks, Predecessors and Times - Process Design The first step in the procedure is to draw a precedence diagram, shown here, the task labels and times entered in the nodes

Explain advertising budget, The production manager at company XYZ needs to ...

The production manager at company XYZ needs to prepare forecasts of product demand in order to plan for appropriate production quantities. In the past, demand for the product has b

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