Homework Help is Here – Start Your Trial Now!
Business
Operations Management
- The mean number of air conditioning units assembled per month by Freeze, Inc. is 750 and the standard deviation is 100 unit E the number of air conditioning units assembled per month follows a normal distribution, calculate the probability of Freeze, In assemble a quantity of air conditioning units greater than the monthly break-even point calculated in problem 3-a. An improved assembling process is proposed to Freeze, Inc. to reduce the variable cost from $500 per unit to $400 per unit. rease the mean number of air conditioning units assembled per month from 750 to 850 and reduce the standard deviation to 90 its. As a result of the improvements, monthly fixed costs would go up from $250,000 to $300,000. Once these improvements are plemented, calculate the new number of air conditioning units that Freeze Inc. must sell every month to break-even, discuss and stify if you would recommend the process improvement initiative. If the number of air conditioning units assembled per month still follows a normal distribution after the implementation of the mprovements described on item (b), calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater nan the new monthly break-even point. Now that you know this probability, would you change your recommendation? lurtifiu

- The mean number of air conditioning units assembled per month by Freeze, Inc. is 750 and the standard deviation is 100 unit E the number of air conditioning units assembled per month follows a normal distribution, calculate the probability of Freeze, In assemble a quantity of air conditioning units greater than the monthly break-even point calculated in problem 3-a. An improved assembling process is proposed to Freeze, Inc. to reduce the variable cost from $500 per unit to $400 per unit. rease the mean number of air conditioning units assembled per month from 750 to 850 and reduce the standard deviation to 90 its. As a result of the improvements, monthly fixed costs would go up from $250,000 to $300,000. Once these improvements are plemented, calculate the new number of air conditioning units that Freeze Inc. must sell every month to break-even, discuss and stify if you would recommend the process improvement initiative. If the number of air conditioning units assembled per month still follows a normal distribution after the implementation of the mprovements described on item (b), calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater nan the new monthly break-even point. Now that you know this probability, would you change your recommendation? lurtifiu

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question
100%
#4- The mean number of air conditioning units assembled per month by Freeze, Inc. is 750 and the standard deviation is 100 units. a. If the number of air conditioning units assembled per month follows a normal distribution, calculate the probability of Freeze, Inc to assemble a quantity of air conditioning units greater than the monthly break-even point calculated in problem 3-a. b. An improved assembling process is proposed to Freeze, Inc. to reduce the variable cost from $500 per unit to $400 per unit., increase the mean number of air conditioning units assembled per month from 750 to 850 and reduce the standard deviation to 90 units. As a result of the improvements, monthly fixed costs would go up from $250,000 to $300,000. Once these improvements are implemented, calculate the new number of air conditioning units that Freeze Inc. must sell every month to break-even, discuss and justify if you would recommend the process improvement initiative. c. If the number of air conditioning units assembled per month still follows a normal distribution after the implementation of the improvements described on item (b), calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater than the new monthly break-even point. Now that you know this probability, would you change your recommendation? Justify.
Transcribed Image Text:#4- The mean number of air conditioning units assembled per month by Freeze, Inc. is 750 and the standard deviation is 100 units. a. If the number of air conditioning units assembled per month follows a normal distribution, calculate the probability of Freeze, Inc to assemble a quantity of air conditioning units greater than the monthly break-even point calculated in problem 3-a. b. An improved assembling process is proposed to Freeze, Inc. to reduce the variable cost from $500 per unit to $400 per unit., increase the mean number of air conditioning units assembled per month from 750 to 850 and reduce the standard deviation to 90 units. As a result of the improvements, monthly fixed costs would go up from $250,000 to $300,000. Once these improvements are implemented, calculate the new number of air conditioning units that Freeze Inc. must sell every month to break-even, discuss and justify if you would recommend the process improvement initiative. c. If the number of air conditioning units assembled per month still follows a normal distribution after the implementation of the improvements described on item (b), calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater than the new monthly break-even point. Now that you know this probability, would you change your recommendation? Justify.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS