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An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000 per month. Current demand volume is 360,000 units per year. The firm can substantially improve the product quality by adding a new piece of equipment at an additional monthly fixed cost of $6,000. Variable cost would also increase to $.60 per unit, but annual demand volume is also expected to jump to 600,000 units due to the improved product quality. a. Based on the above information, determine whether the addition of the new equipment is a profitable proposition for the company. b. What is the minimum unit price that would render profitable the addition of the new equipment? Demonstrate clearly all the calculations that support your answers to the above questions.
Explain about the economics of scope of lean production. Economies of scope: It is possible while resources as like machinery or labour can be shared to manufacture vari
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The classified department of a monthly magazine has use a combination of qualitative and quantitative methods to forecast sales of advertising space. Results over a 20 month period
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briefly explain vendor relations in lean systems- a. Why are they important? b. how are they different from adversarial relations of the past? c. why are suppliers hesitan
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Brunswick, read an article on time-phased requirements planning. He was curious about how this technique might work in scheduling Brunswick's engine assembly operations and decided
What do your contingency plan in case your plan of action doesn't work?
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