Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $3,000 per year in additional revenue, with variable costs estimated at $1,000 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 200 patients annually. How many patients would have to be added for the new process to break even?
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
OPERATIONS MANAGEMENT CUSTOM ACCESS
Additional Business Textbook Solutions
Microeconomics
Horngren's Accounting (12th Edition)
Intermediate Accounting (2nd Edition)
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Marketing: An Introduction (13th Edition)
- A company with 617 employees had the following expenses this year (2018): 14 hospitalizations, $5,600 Cost (each) What is the total cost of 14 hospitalizations?arrow_forwardWhat are the three ways that machine time can be spent in Practice Operations? Support your reasons.arrow_forwardRock View Restaurant is a new fast-food restaurant chain. The Operations Manager has dividedits normal drive-through service process into the following tasks: Task Description Task time in seconds Predecessors A Take Order 25 none B Received Payment 20 A C Gather Drinks 35 A D Gather Food 32 A E Put food etc. in bag 25 C,D F Give food to customer 10 B,E Currently, Rock View Restaurant has a single window with one person who takes the order,gather the food, collects the money and gives the food to the customer. This takes an average of147 seconds per customer so only 25.5 cars can be served. Rock View Restaurant wants toincrease its drive-through capacity to 60 cars per hour by forming a multi-window line. i. Draw the precedence diagram to represent the process at Rock View Restaurant.ii. Calculate the cycle time in seconds.iii. Calculate the minimum number of windows that Rock View Restaurant will need toserve 60 cars per hour.arrow_forward
- Rock View Restaurant is a new fast-food restaurant chain. The Operations Manager has dividedits normal drive-through service process into the following tasks: Task Description Task time in seconds Predecessors A Take Order 25 none B Received Payment 20 A C Gather Drinks 35 A D Gather Food 32 A E Put food etc. in bag 25 C,D F Give food to customer 10 B,E Currently, Rock View Restaurant has a single window with one person who takes the order,gather the food, collects the money and gives the food to the customer. This takes an average of147 seconds per customer so only 25.5 cars can be served. Rock View Restaurant wants toincrease its drive-through capacity to 60 cars per hour by forming a multi-window line. Using the LOT heuristic, assign the tasks to the windows to produce the desiredservice rate making sure that the precedence relationship is maintained.Calculate the efficiency of the newly design process.arrow_forwardWhat processes at manufacturing firms are really service processes that involve considerable customer contact? Can customer contact be high, even if the process only has internal customers?arrow_forwardThe owner of Eat Now Restaurant implemented an expanded menu last year. The menu was a success, drawing many more customers, who seemed to like the increased variety of the menu choices over the previous menu. But, good news soon became bad news as long waiting lines began to deter customers and business dropped off. Because of the space and other limitations, there didn’t seem to be any viable options to consider. Then a customer mentioned a technique called mass customization that was being used at his company. He said it really streamlined processing and maybe it could work for the restaurant. What costs would be involved in transitioning to this system?arrow_forward
- The owner of Eat Now Restaurant implemented an expanded menu last year. The menu was a success, drawing many more customers, who seemed to like the increased variety of the menu choices over the previous menu. But, good news soon became bad news as long waiting lines began to deter customers and business dropped off. Because of the space and other limitations, there didn’t seem to be any viable options to consider. Then a customer mentioned a technique called mass customization that was being used at his company. He said it really streamlined processing and maybe it could work for the restaurant. Describe how that approach could work at the restaurant and why it could be expected to reduce waiting lines.arrow_forwardSuppose your manager presents you with the following information about machines that could be used for a job, and wants your recommendation on which one to choose. The specification width is .48 mm. In this instance, you can narrow the set of choices, but you probably wouldn't make a recommendation without an additional piece of information. (Round your answers to 3 decimal places.) TTT Cost per Standard Deviation Unit ($) Machine (mm) A 21 .059 B 12 .060 14 .070 D 10 .062 Answer is complete but not entirely correct. Process Cp A 0.135 B 1.333 C 0.114 X D. 1.290 We can narrow the choices to processes A and Barrow_forwardIdentify a business operation to which you have access to information and operation to observe the physical space of the business. You can choose area of service such as clinic, restaurant, café, a specific department of a hospital/school or any other relevant business or service setting. Collect information about the capacity of service. Additionally, obtain the average number of customers obtained service for the past 6 months (each month separately). The word limit for this assignment shall be 2500 words. And the assignment shall include the following: Analyze and evaluate literature of capacity management and explain different capacity strategies and capacity constraints. Analyze and evaluate literature on demand management and explain demand management strategies. Also address the changing nature of the market demand for products or services Based on the information you have collected from the organization; discuss about the capacity and demand management strategies they are…arrow_forward
- Rock View Restaurant is a new fast food restaurant chain. The Operations Manager has dividedits normal drive-through service process into the following tasks:Tasks Description Task Time(InSeconds)PredecessorsA Take order 25 NoneB Receive payment 20 AC Gather drinks 35 AD Gather food 32 AE Put food etc. in bag 25 C,DF Give food to customer 10 B,E Currently, Rock View Restaurant has a single window with one person who takes the order, gather the food, collects the money and gives the food to the customer. This takes an average of 147 seconds per customer so only 25.5 cars can be served.…arrow_forwardRock View Restaurant is a new fast food restaurant chain. The Operations Manager has dividedits normal drive-through service process into the following tasks:Tasks Description Task Time(InSeconds)PredecessorsA Take order 25 NoneB Receive payment 20 AC Gather drinks 35 AD Gather food 32 AE Put food etc. in bag 25 C,DF Give food to customer 10 B,E Currently, Rock View Restaurant has a single window with one person who takes the order, gather the food, collects the money and gives the food to the customer. This takes an average of 147 seconds per customer so only 25.5 cars can be served.…arrow_forwardAs a graduate assistant, your duties include grading and keeping records for Operations Management course homework assignments. Five sections for 40 students each are offered each semester. A few graduate students attend sections 3 and 4. Graduate students must complete some extra work to higher standards for each assignment. Every student delivers (or is supposed to deliver) directly to (under) the door of your office one homework assignment every Tuesday. Your job is to correct the homework, record grades, sort the papers by class section, sort by student last name in alphabetical order, and return the homework papers to the appropriate instructors (not necessarily in that order). There are some complications. A fair majority of the students sign their names legibly, others identify work with their correct ID number, and a few do neither. Rarely do students identify their section number or graduate status. Prepare a list of process chart steps and place them in an efficient sequence.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.