Why insufficient to handle the increased workload, Operation Management

Assignment Help:

A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities).

Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $250,000 per year, and variable costs would be $500 per boat. Subcontracting would involve a cost per boat of $2,500, and expansion would require an annual fixed cost of $50,000 and a variable cost of $1,000 per boat.

a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.)
A. _________ or More
B. _________ To __________
C._________ To ___________


Related Discussions:- Why insufficient to handle the increased workload

Calculate first''s rop, First printing has contracts with legal firms in Sa...

First printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 12,500 pages of documents. The lead time for paper

Calculate a profit and loss statement, Calculate a profit and loss statemen...

Calculate a profit and loss statement and balance sheet (including calculating a missing figure. Capital): Asset, liability, owner's equity, revenue and expense amounts for Almo

Value driven approach, value driven approach to production managemeent

value driven approach to production managemeent

Line balancing, what do you understand by line balancing what happens if ba...

what do you understand by line balancing what happens if balance doesn''t exist?

Explain what message did management send through this tactic, Super TV Chan...

Super TV Channel 6 operates in a major Midwestern city and is on the air 24 hours a day. Labour-management relations there have been relatively good over the years. There are three

Benefits of effective operations management, what are the benefits of effec...

what are the benefits of effective operations management. Discuss.

Explain limitations of interactive media and cbt, Simulate, a Texas aviatio...

Simulate, a Texas aviation training company, expected to whip the competition with FasTrakits computer-based training (CBT) curriculum for corporate pilots. Instead, the new ventur

Define what are the advantages of financing via the internet, In the What w...

In the What would you do section of your text in section 9, Pam Marrone of AgraQuest, Inc. tapped into Internet sources when she needed additional financing. Be specific and suppor

Describe mpc can run independent of the operation plan, Which of the follow...

Which of the following is true? MPC can run independent of the operation plan. Business failure can result from poor MPC performance. In PAC, order release directly affect

Compute the gagne-briggs, Critically evaluate the Gagne-Briggs (Gagne sound...

Critically evaluate the Gagne-Briggs (Gagne sounds like Gone-Yea. Briggs rhymes with "bigs") theory of instructional design Is it complete; what is missing; how would you change i

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