Your startup company is considering manufacturing 5,000 units annually of a simple but importantcomponent for an aerospace contractor. With your existing resources, you priced the startup tooling tocost $1,000, and the cost to produce each unit will be $1.50.Alternatively, you can purchase an automated system for $15,000 which will reduce the cost per unit to$0.50.Neglecting interest, the breakeven point (years) is most nearly:2.83.615.0never

Given, Annual production = 5000 units Own system: Fixed Cost = $1000 Variable cost = $1.5…

Answered: Your startup company is considering…

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

Similar questions

A fundamental trade-off in the design of any business system is between efficiency and flexibility: one can't have ultimate efficiency and infinite flexibility at the same time. The simplification and standardization required to improve the efficiency of an operation inevitably restrict the things the system can do. In addition, the short-term changes and decisions needed to make an operation more flexible inevitably disrupt the smooth and predictable process flow needed for optimal efficiency. In the readings, you have seen that different system design philosophies and tools tend to generate different balances between efficiency and flexibility, which, in theory, allows you to design a system with the optimal balance between the two. As you have learned, the optimal balance between efficiency and flexibility depends on the competitive environment an organization expects to face in the future. You have also learned in this course that the future is notoriously hard to predict,…
Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $20,000 so he can obtain the bank's approval for the loan. Current Situation Sales Cost of material $100,000 $45,000 (45%) Production costs Fixed cost Profit $25,000 (25%) $15,000 (15%) $15,000 (15%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,000? What is the cost of material with a $20,000 profit? A decrease of 11.1 % in material (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of $ 40000 . (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.)
3-D printing, also known as "additive manufacturing," generally works by adding tiny layers of material-usually powdered metal or plastic-one at a time to form an item, and fusing them with binding agents, lasers or other methods. Thus, parts are "grown" instead of forged, cast, molded, or machined as in traditional manufacturing. Just a decade ago, this kind of manufacturing was, with rare exceptions, suitable only for creating prototypes. What's different now is that newer technology lets these systems print objects strong enough to be used in finished products and relatively quickly. Recently, for example, GM made 60,000 weatherproof seals using 3-D printing, in plastic, rather than making them the old-fashioned way, to make sure it could deliver its 2022 Chevy Tahoe on time. BMW is making broad use of 3-D-printed parts throughout its lineup. Mercury Marine is producing its newest V12, 600-horsepower outboard motor with 3-D-printed molds. 3-D printing is making rapid inroads into…
This is a subjective question, hence you have to write your answer in the Text-Field given below. 709-2023/ the fext-Fire 20 28/05/21-20214 Discuss any five common mistakes in automotive manufacturing and explain how Poka-Yoke can address those problems with examples 202118bts in au 09-2023/05/2 18b1305-82709-2023/ mples/05/21
What exactly is ISO, and why should a systems developer care about it?
How much experience have you had operating an equipment ? whst is your prpficency , please give example with star method
Concord, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $12, while the cost of assembling each unit is estimated at $14. Unassembled units can be sold for $59, while assembled units could be sold for $65 per unit. What decision should Concord make? Process further; the company will save $8 per unit. Sell before assembly; the company will save $8 per unit. Sell before assembly; the company will save $4 per unit. Process further; the company will save $6 per unit.
ABC is still at a relatively early stage of its development and its implications for the process control may in the final analysis be more important than its product costing implications. it is a good time for every organization to consider whether or not ABC is appropriate to its particular circumstances. You are required (a) to contrast the feature of organizations which would benefit from ABC with those which would not. (b) to explain in what ways ABC may be used to manage costs, and the limitations of these approaches. (c) to explain control product costs.
Relationship of Waterfall Methodology to Cost and Profit Estimates
A mechanical contractor pays his workers $32 per hour. How does that contractor justify billing his clients at a rate of $76 per hour? State several specific reasons. Based on the information presented in class, a mechanical contractor typically adds _____ % to the job cost for overhead and _____ % for profit. What is the approximate cost per square foot for the mechanical systems in a medical office building?
Number of defects and number of items reworked could be a Key performance indicator to measure the efficiency of? 1.environmental perspective 2.growth perspective 3.financial perspective 4.internal perspective
Would critical ratio be better utilized as a static ratio or a dynamic ratio, and why?

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

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

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

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…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS