An operations manager is deciding onthe level of automation for a newprocess. The fixed cost forautomation includes the equipmentpurchase price, installation, andinitial spare parts. The variable costsper unit for each level of automationare primarily labor related. Each unitcan be sold for $80. As in manycases, you have the defaultalternative of doing nothing ($0 fixedcost, $0 variable costs).When comparing Alternative B toAlternative C, C is the mostattractive option aboveunits.DO NOT INCLUDE A COMMA. Roundyour answer to the nearest wholenumber and do not include units ora comma. For example, submit12450 and NOT 12,450.Alternative FixedCostsABC$100,000$292,000$560,000VariableCosts perUnit$54$42$20Hint: For these questions, also considerthe "Do Nothing" option as a viable optionwhen making your decision.

Ans) Formula: Profit = Units*(Sales Price - Variable Cost) - Fixed Cost At Breakeven, Profit = 0…

Answered: An operations manager is deciding on…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Samantha’s Group of Companies is deciding if it should design an advertising system for use on its website. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $25,000 under good conditions or -$15,000 under bad conditions. The final choice is System B, which would increase sales -$5,000 under both good and bad conditions. Note that it costs $25,000 to develop a system. Assume that good conditions are TWICE as likely as the bad conditions. (Hint: twice as likely means a ratio of 2:1). Outline the ultimate objective for the use of decision trees in product design. How is this objective accomplished? Draw the appropriate decision tree for the above problem.
Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. 68 employees work the first shift and 30 the second. The contract price is $220 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production six days per week. When each of the two shifts works 72 hours per week, production increases to 3,800 uniforms per week but at a cost of $144 each. a. The multifactor productivity level for two shifts working 72 hours when compared to the level of the normal two shifts.
A Shoe retailer wants to add a new brand in his shoe outlet. When this new product will added an additional weekly payment of $5500 will be required. Variable cost is $5/product and selling price is $11/product. Find the operating profit generated if 2100 units are sold in a week? A)$12,600 B)$4,800 C) $6,800 D) $7,100
The sales and operations plan ------ feasible.
Your small toy manufacturing facility has the following information: Fixed costs $39,000 Material cost per toy $0.888 Electricity cost per toy $0.044 Labor cost per toy $0.207 Management demands that we have $9,000 in profit if we sell 45,000 toys. What must the selling price be to achieve this? (Enter three decimal places)
An operations manager is deciding on the level of automation for a new process. The fixed cost for automation includes the equipment purchase price, installation, and initial spare parts. The variable costs per unit for each level of automation are primarily labor related. Each unit can be sold for $81. As in many cases, you have the default alternative of doing nothing ($0 fixed cost, $0 variable costs). Hint: For these questions, also consider the "Do Nothing" option as a viable option when making your decision. Alternative Fixed Costs Answer: A Check B C $100,000 $272,000 $560,000 Variable Costs per Unit $54 $31 Recommended: graph each alternative with units on the x-axis and $ on the y- axis. Also, include revenue on the chart. Identify the break-even points and points of indifference. For help on this, see the video posted in Moodle. $20 What is the break-even point for option B? Round your answer to the nearest whole number and do not include units.
An operations manager is deciding on the level of automation for a new process. The fixed cost for automation includes the equipment purchase price, installation, and initial spare parts. The variable costs per unit for each level of automation are primarily labor related. Each unit can be sold for $84. As in many cases, you have the default alternative of doing nothing ($0 fixed cost, $0 variable costs). What is the break-even point for option C? DO NOT INCLUDE A COMMA. Round your answer to the nearest whole number and do not include units or a comma. For example, submit 12450 and NOT 12,450. Alternative Fixed Costs A B C $100,000 $282,000 $560,000 Variable Costs per Unit $54 $37 $20 Round your answer to the nearest whole number and do not include units.
True or False: Capacity planning in operations management involves ensuring that a company's resources, including equipment, labor, and facilities, are able to meet current and future demand levels efficiently.
An operations manager has compiled the information below for four manufacturing alternatives (A, B, C,and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The three states of nature represent three levels of consumer demand for the firm's products. Values in the table are net present values of future profits in millions of dollars. Show your workings in a table format to get credit for your answers. High Medium Low Demand Demand Demand Alternative A 90 72 86 Alternative B 70 34 95 Alternative C 41 88 100…
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…
Partial Operational and Financial Productivity; Total Productivity Katrina Design hasdecided to experiment with two alternative manufacturing approaches, identified as MF and LI,for producing men’s fashions. The firm expects the total demand to be 20,000 suits. Managementestimates the required input resources using the different manufacturing approaches are:Direct Materials (yards) Direct Labor (hours)MF 240,000 100,000LI 180,000 120,000The cost of direct materials is $10 per yard; the cost of direct labor is $26 per hour.Required In your calculations, use 4 significant digits after the decimal point.1. Compute the partial operational productivity ratios for each of the production approaches. Whichapproach would you select based on the partial operational productivity ratios?2. Calculate the partial financial productivity ratios for each of the production approaches. Which approachwould you select based on the partial financial productivity ratios?3. Compute the total productivity…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS