t if they will acquire one, two or three machines. Data shown below:
To cope up with the demand in supply, a plant manager has to decide on to how many machines should be purchased as an additional to their existing ones. The budget can only accommodate up to 3 machines, but the Finance team is requiring him to show the impact if they will acquire one, two or three machines. Data shown below:
|
# of Machine |
Annual Fixed Cost |
Range of Output |
|
One |
Php 10,000 |
0 to 5000 |
|
Two |
Php 140,000 |
5001 to 8000 |
|
Three |
Php 200,000 |
8001 to 12000 |
Variable cost is 350 per unit and revenue is 600 per unit.
(a) Determine the break-even point for each range
(b) If projected demand is between 8500 and 9000 units how many machines should the manager purchase?
- How the following organizations adjust to the daily fluctuations in demand? Explain each.
(a) Airlines (b) Restaurants (c) Fitness Salon (e) Face shield manufacturer
Step by step
Solved in 2 steps
