An operations manager is deciding on the level of automation for a newprocess. The fixed cost for automation includes the equipment purchaseprice, installation, and initial spare parts. The variable costs per unit for eachlevel 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 fixedcost, $0 variable costs).Hint: For these questions, also consider the "Do Nothing" option as a viable optionwhen making your decision.Alternative FixedCostsAnswer:ACheckBC$100,000$272,000$560,000Variable Costs perUnit$54$31Recommended: 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 pointsof indifference. For help on this, see the video posted in Moodle.$20What is the break-even point for option B?Round your answer to the nearest whole number and do not include units.

Formula to be used : Break even point = Fixed cost / Contribution margin per unit

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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show instruction how to do them. Add a new scenario to compare the profit with maximum enrollments as follows: Use Max Attendance as the scenario name. Use the enrolled trainees per day data (range B8:F8) as the changing cells. Enter cell values for the Max Attendance scenario as shown in bold in Table 1, which are the same values as in the range B7:F7.
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What are the major causes of capacity leakage? Are they avoidable? 11.10 Questions for managers Medi-Call provides personal alarm systems to the elderly and infi rm. Customers are principally those people who live alone, preferring to stay in their own homes rather than be looked after in some form of institutional care or with family. The customer has a small transmitter/receiver, which can be worn as a pendant or on the wrist like a watch. If the customer has a problem they press the button on the pendant, which activates a base station located at the customer’s telephone. The base station calls Medi-Call’s contact centre, which provides 24/7 cover to ensure maximum reassurance for its customers. Medi-Call’s agent will attempt to establish contact with the customer. Because the transmitter is so sensitive, it is possible to carry out a conversation up to 50 metres away from the base station. Medi-Call’s staff are trained to provide immediate reassurance to the…
In many organisations, product-mix decisions are made by the marketing or sales departments. Why is this critical from an operations perspective and how might organisations be able to tackle this issue?
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Discuss the ethical considerations involved in continuity planning, especially regarding employee welfare and stakeholder interests.
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Only need to do second question thanks. For the second question, wouldn't the £150 class as labour hours? I don't understand why you multiply it the 30 by £6.67 when it already states the labour hours thanks
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