S7.18Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by addingnew equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, andfor proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00.Using the data in Problema) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost?b) What is the break-even point in dollars for proposal B if you add $10,000 installation to the fixedcost?

Answered: Image /qna-images/answer/20d98abb-3448-4489-b897-1023a0fa21d7.jpg

Answered: Markland Manufacturing intends to…

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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During the analysis, we contrasted three methods for assessing system requirements: a time-honored classic, a cutting-edge technique, and an outlandish plan of attack. You have likely considered a number of other approaches. When do you think each strategy would be most useful, and what are the downsides of using each approach?
Sales for the last quarter of the year were good, with tops sales at 3,400 units and pants sales at 3,200 units. Demand for the first quarter sales of next year is expected to decline by 8%. What is your forecast for the demand of tops and pants? Tops Sales Forecast: 0 ▲ ▼ Pants Sales Forecast: 0 ▲ ▼ Is there anything you could do to help minimize the effect of the projected decline in demand on sales?
Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: General Purpose Equipment (GPE) Flexible Manufacturing System (FMS) 250,000 $125,000 $15.00 Annual contracted units Annual fixed cost Per unit variable cost The option GPE is best when the contracted volume is below units (enter your response as a whole number). Dedicated Machine (DM) 250,000 $225,000 $14.00 250,000 $525,000 $13.00
Define the feasibility in terms of operational, technical, financial, and scheduling aspects.
Case Study Nadia has always loved making things with her own hands. She studied a variety of trades, but did not pursue any of them. Nadia loves to learn new technologies, but once she excels at one of them, she loses her sense of challenge. Since she does not have much money to spend on these trades, she feels limited. In order to be able to practice one of her trades more, Nadia realizes that she must invest her money in special equipment and find herself in one trade. Nadia has always been interested in carpentry and has developed great hand tools skills. She also gained some experience in the use of machine tools, and she is very happy in designing all kinds of furnishings, and she would like very much to implement some of the unique pieces of furniture that she designed. Nadia would like to start by purchasing enough basic hand tools and machinery to set up a small carpentry shop, and she feels the business is wide enough to give her a feeling of constant challenge. What…
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