Wolfgang Kersten Mfg. intends to increase capacitythrough the addition of new equipment. Two vendors havepresented proposals. The fixed costs for proposal X are $150,000,and for proposal Y, Sl70,000. The variable cost for X is $120.00,and for Y, $100.00. The revenue generated by each unit is $200.00.a) What is the break-even point in units for proposal X?b) What is the break-even point in units for proposal Y?
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Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, Sl70,000. The variable cost for X is $120.00, and for Y, $100.00. The revenue generated by each unit is $200.00. a) What is the break-even point in units for proposal X? b) What is the break-even point in units for proposal Y? |
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- Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?Stapleton Manufacturing intends to increase capac-ity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, andfor proposal B, $34,000. The variable cost for A is $10, and for B,$14. The revenue generated by each unit is $18. a) What is the crossover point in units for the two options?b) At an expected volume of 8,300 units, which alternative shouldbe chosen?Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation byadding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are$50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenuegenerated by each unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
- Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding new equip-ment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variablecost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?• $7.17 Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00. 1. What is the break-even point in units for proposal A? 2. What is the break-even point in units for proposal B?41. A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usage can be described by this distribution: Number 0 1 2 3 Probability .10 .50 .25 .15 If a part fails and a spare is not available, two days will be needed to obtain a replacement and install it. The cost for idle equipment is $500 per day. What quantity of spares should be ordered? Page 553 a. Use the ratio method. b. Use the tabular method (see Table 12.3).
- Enabled: Chapter 5 What-If Analysis for Linear... Saved Help Save & Exit Submit Based on the following sensitivity report, how much should the firm be willing to pay for 76 more units of Resource_C? Variable Cells Final Objective Allowable Allowable Cell Name Value Reduced Cost Coefficient Increase Decrease $B$2 Product_1 -2 1E+30 $B$3 Product_2 175 1E+30 $B$4 Product_3 -1.5 1.5 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H.Side Increase Decrease $H$9 Resource A 100 1E+30 20 220 $H$10 $H$11 Resource B 525 800 1E+30 Resource_C 700 2.00 700 180 77 (Round your answer to 2 decimal places.) Units of Resource_C 574 - Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixedcost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75per unit.a) What is Smithson’s break-even point in units?b) What is the break-even point in dollars?1. Develop a level production plan for Covolo Diving Gear. What are the advantages and disadvantages of this plan? Could Covolo implement a pure chase plan, given the current capacity? Why? If sales continue to grow, what are the implications for production capacity at Covolo?
- ••• 1.9 Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery’s ovens to make them more energy-efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with: the data as per below-attached imageS7.18 Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00. Using the data in Problem a) 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 fixed cost?The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which will require leasing new equipment for a monthly payment of $6,000. Variable costs would be $2 per pie, and pies would retail for $7 each. a. How many pies must be sold in order to break even? b. What would the profit (loss) be if 1,000 pies are made and sold in a month? How many pies must be sold to realize a profit of $4,000? С. d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie? 5-30