Explain production department says that to achieve, Operation Management

Assignment Help:

The sales department tells management that they can increase revenue by 20 percent by increasing sales 20 percent, but the production department says that to achieve that number of units, they will have to buy a new piece of equipment that will add $200,000 to the appropriate category. What happens when we enter those changes into our model? (Enter a new number in Enter Units that reflects a 20 percent increase in chairs sold. Increase Manufacturing Machinery to allow for the new purchase.) Clearly, a 20 percent increase in sales will increase revenue 20 percent, but what happens to profits?

a. Profits decrease 25 percent.

b. Profits increase 41 percent.

c. Profits decrease 41 percent.

d. Profits do not change


Related Discussions:- Explain production department says that to achieve

Explain the best leader you ever had and why, 1. Describe in your own words...

1. Describe in your own words the best leader you ever had and why? Be specific in your answers as to the impact this leader had in your workplace. 2. Describe in your own words

Define the importance of management systems, 1. Propose a definition of inn...

1. Propose a definition of innovation in your own words (50-100 words). 2. Compare the concepts of innovation, invention, and creativity. 3. Describe the relationship between

Explain christian ethical position, The approach of utilitarianism is rathe...

The approach of utilitarianism is rather democratic in that it suggest that greatest good or happiness is for the greatest number. It does provide the student with the prospect tha

Describe testing for honesty, "Testing for Honesty" Please respond to the f...

"Testing for Honesty" Please respond to the following: From the case study, determine what ideals, obligations, and effects must be considered in using psychological tests as pre-e

Negative feedback in open system, Negative Feedback in Open System A u...

Negative Feedback in Open System A ubiquitous feature of all open systems is feedback. This is necessary for a system to maintain dynamic equilibrium despite being subjected t

Explain labour vs employment arbitrator, Use this for questions 7 and 8: Yo...

Use this for questions 7 and 8: Your Company terminated an employee for stealing a ladder. The employee filed a grievance with the union. The union argues that the employee had ver

Describe the relevance of tqm, Explain the relevance of TQM in decision mak...

Explain the relevance of TQM in decision making and controlling processes.

Process focused production system, Process Focused Production System Th...

Process Focused Production System This is a form of production system in which production operations are grouped according to the type of process. In other words, all productio

Operations strategy in financial services, According to Macintosh (2007), t...

According to Macintosh (2007), the greatest challenge facing modern managers is to raise the quality and productivity of service work. Or Many prominent managerial authors argue th

Explain risk management, Risk management is exposure to the consequences of...

Risk management is exposure to the consequences of uncertainty culture, processes and structures directed towards the management of potential opportunities determining if risk is 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