GENERAL- FLEXIBLE EQUIPMENT MANUFACTURING MACHINE SYSTEM (FMS) PURPOSE DEDICATED (GPE) (DM) 200,000 200,000 200,000 Annual contracted units Annual fixed cost $100,000 $200,000 $500,000 Per unit variable cost $ 15.00 $ 14.00 $ 13.00

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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Refer to Problem 7.1. If a contract for the second
and third years is pending, what a re the implications fo r process
selection?
GENERAL-
FLEXIBLE
EQUIPMENT MANUFACTURING MACHINE
SYSTEM (FMS)
PURPOSE
DEDICATED
(GPE)
(DM)
200,000
200,000
200,000
Annual contracted
units
Annual fixed cost
$100,000
$200,000
$500,000
Per unit variable cost
$ 15.00
$ 14.00
$ 13.00
Transcribed Image Text:GENERAL- FLEXIBLE EQUIPMENT MANUFACTURING MACHINE SYSTEM (FMS) PURPOSE DEDICATED (GPE) (DM) 200,000 200,000 200,000 Annual contracted units Annual fixed cost $100,000 $200,000 $500,000 Per unit variable cost $ 15.00 $ 14.00 $ 13.00
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