Homework Help is Here – Start Your Trial Now!
Business
Operations Management
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 A Answer: B Check с Fixed Costs $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 $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 A Answer: B Check с Fixed Costs $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.

Practical Management Science
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
icon
Related questions
Question
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.
Transcribed Image Text: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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
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
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
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…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS