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...

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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.
The production system design planning considers input requirements, conversion process and output. After considering the forecast and long-term planning organization should undertake capacity planning. Capacity planning is essential to be determining optimum utilization of resource and plays an important role decision-making process, for example, extension of existing operations, modification to product lines, starting new products, etc. With this regard, Examine different types of capacity measurements available for capacity planning. Provide relevant examples for each measurement.
Strategic cost management Nathaniel installs mufflers at NUBD Company. He is paid 500 per hour and an extra 100 per hour for every hour over 40 that is worked in a given week. Last week he worked 50 hours with 2 of these correctly classified as idle time. How much of Nathaniel’s wages last week should be included in manufacturing overhead cost?
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 laboratory that performs the industrial ope Industrial Processes Television Mobile Time Manufacturing Assembly Packaging Profit 10 6 2 10 8 10 3 6 At most 2000 At most 1600 At most 200 Required: Find the maximum value for profits and the number of materials produced from televisions and mobiles, using graphical method.
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.
The integral objective of capacity planning is to achieve a match between the long-term supply capabilities of an organization and the predicted level of long-run demand. Briefly describe any five

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