Lukas manufacturing , Strategic Management

Assignment Help:

Lukas Manufacturing is presently producing a tape holder that has a variable cost of $0.75 per unit and a selling price of $2.00 per unit.  Fixed costs are $20,000 a year.  Present volume is 40,000 units a year.  The firm can make a better product by adding a new piece of equipment to the process line.  This equipment shows an increase of $5,000 per year in fixed costs.  The variable cost would reduce to $0.25 per unit.  The volume for the latest and improved product should rise to 50,000 units a year.

(a)    Should the company invest in the latest equipment?

(b)    At what volume does the equipment choice change?

(c)    At a volume of 15,000 units, which process should be used?


Related Discussions:- Lukas manufacturing

Procedural history - sample case briefing, Procedural History: The pl...

Procedural History: The plaintiff filed an action for negligence under Texas law  and  the trial  court granted summary judgment in favor of the defendants.  All you are d

Explain two-part tariff system, Q. Explain Two-part tariff system? With...

Q. Explain Two-part tariff system? With a two-part tariff system the buyer is charged: A transfer price equal to the seller's variable (marginal) cost for each unit sold

Synergy, explain the concept of synergy

explain the concept of synergy

Industrial accident, An industrial accident may be defined as "an occurrenc...

An industrial accident may be defined as "an occurrence. Which interrupts or interferes with the orderly progress or work in an industrial establishment." According to the Facto

Tangy spices ltd, what strategic alternatives followed by Tangy spices ltd?...

what strategic alternatives followed by Tangy spices ltd?

How you can recognizing a company’s strategy, Recognizing a Company's Strat...

Recognizing a Company's Strategy 1.   A company's strategy is reproduced in its actions in the marketplace & the statements of senior managers regarding the company's current b

How is knowledge management related to information systems, Question: a...

Question: a) How is knowledge management related to information systems? b) What is the difference between tacit and explicit knowledge? From your own experience, describe

Strategy is currently developed in vrc company, VRC is a family owned busin...

VRC is a family owned business which has been manufacturing racing cycles for over a century. Over the years, the company has been relatively successful, although its growth has te

Marketing strategy for services, Marketing Strategy for Services ...

Marketing Strategy for Services This activity is part of your marketing plan.  Prepare a 4-5 page report, addressing the following : o   Describe the target

Development of an asset management plan, Write a submission to your chief e...

Write a submission to your chief executive officer of your organisation describing a strategy to improve the organisation's assets, their management, and the standard of service wh

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