E.25 Using the accompanying log-log graph, answer the following questions: a) What are the implications for management if it has forecast its cost on the optimum line? b) What could be causing the fluctuations above the optimum line? c) If management forecast the 10th unit on the optimum line, what was that forecast in hours? d) If management built the 10th unit as indicated by the actual line, how many hours did it take? 500 400 300 200 Actual Optimum 100 80 60 40 20 10 1 10 100 200 300 400 Total units produced Labour-hours per unit
E.25 Using the accompanying log-log graph, answer the following questions: a) What are the implications for management if it has forecast its cost on the optimum line? b) What could be causing the fluctuations above the optimum line? c) If management forecast the 10th unit on the optimum line, what was that forecast in hours? d) If management built the 10th unit as indicated by the actual line, how many hours did it take? 500 400 300 200 Actual Optimum 100 80 60 40 20 10 1 10 100 200 300 400 Total units produced Labour-hours per unit
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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Using the accompanying log–log graph, answer the following questions: a) What are the implications for management if it has
Transcribed Image Text:E.25 Using the accompanying log-log graph, answer the
following questions:
a) What are the implications for management if it has forecast its
cost on the optimum line?
b) What could be causing the fluctuations above the optimum line?
c) If management forecast the 10th unit on the optimum line, what
was that forecast in hours?
d) If management built the 10th unit as indicated by the actual line,
how many hours did it take?
500
400
300
200
Actual
Optimum
100
80
60
40
20
10
1
10
100
200 300 400
Total units produced
Labour-hours per unit
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