Explain choosing a new piece of equipment, 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

Machine C

Fixed Costs/Month

$ 6,000.00

$ 17,000.00

$ 10,000.00

Variable Cost/Unit

$ 87.00

$ 51.00

$ 68.00

Revenue/Unit

$ 250.00

$ 250.00

$ 250.00

Capacity/Month

100

500

200

Breakeven Volume




Breakeven Utilization




Best Option Volume Range




min




max




 


Related Discussions:- Explain choosing a new piece of equipment

Relationship that exist among companies and profit motives, Explain the rel...

Explain the relationship that exist between companies, profit motives, competition and private property.

Describe how many bags per run are optimal, A chemical firm produces sodium...

A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100

How to construct an electricity generating unit, To construct an electricit...

To construct an electricity generating unit, a company has to install 60 items. One team takes on an average 30 days to install one item. A team works for 300 days/year and managem

What are some instances that would explain strategic groups, What are some ...

What are some examples that would explain strategic groups?

Explain visual inspection, Develop a forecast for years 2 through 12 using ...

Develop a forecast for years 2 through 12 using exponential smoothing with ? = .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the nai

Describe the advantages of work study, Describe the advantages of work stud...

Describe the advantages of work study. The following are the advantages: (i) Uniform and enhanced production flow, (ii) Higher productive efficiency, (iii) Decreased

Depict the monthly sales data on a sheet of graph paper, 1. The monthly sal...

1. The monthly sales for Telco Batteries, Inc., were as follows: Month Sales Jan 20 Feb 21 Mar 15 Apr 14 May 13 Jun 16 Jul 17 Aug 18 Sep 20 Oct 20 Nov 21 Dec 23 a. Plot the m

Explain google''s customer value proposition, Describe Google's customer va...

Describe Google's customer value proposition and profit formula linked to its business model. What strategies has Google relied upon to build competitive advantage in the industry?

Define the minimum and maximum cycle times, An assembly line with 11 tasks ...

An assembly line with 11 tasks is to be balanced. The longest task is 2.7 minutes, the shortest task is 0.4 minutes, and the sum of the task times is 18 minutes. The line will oper

Explain job design be used to create a motivated workforce, How can job des...

How can job design be used to create a more motivated workforce? Be specific.

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