Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
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Textbook Question
Chapter 6, Problem 5P
Patricia Zell, a dollmaker from Olney, Maryland, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and equipment is estimated at $25,000. Labor and material costs are approximately $10 per doll. If the dolls can be sold for $50 each, what volume of demand is necessary for the Tiny Trisha doll to break even?
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6.5. Patricia Zell, a dollmaker from Olney, Maryland, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and equipment is estimated at $25,000. Labor and material costs are approximately $10 per doll. If the dolls can be sold for $50 each, what volume of demand is necessary for the Tiny Trisha doll to break even?
Patricia Zell, a dollmaker from Olney, Maryland, is interested in the mass marketing and production of a ceramic dollof her own design called Tiny Trisha. The initial investmentrequired for plant and equipment is estimated at $25,000.Labor and material costs are approximately $10 per doll. Ifthe dolls can be sold for $50 each, what volume of demandis necessary for the Tiny Trisha doll to break even?
Jupiter Game Company manufactures pocket electronic games. Last year Jupiter sold 25,000 games at $25 each. Total costs amounted to $525,000, of which $150,000 were considered fixed costs.
In an attempt to improve its product, the company is considering replacing a component part that has a cost of $2.50 with a new and better part costing $4.50 per unit in the coming year. A new machine also would be needed to increase plant capacity. The machine would cost $18,000 with a useful life of six years and no salvage value. The company uses straight-line depreciation on all plant assets. (Ignore income taxes).
1) If management holds the sales price constant and makes the suggested changes, how many units of product must be sold in the coming year to break even?
Chapter 6 Solutions
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Ch. 6 - Prob. 1.1ASCCh. 6 - Prob. 1.2ASCCh. 6 - Prob. 1.3ASCCh. 6 - Discuss the types of decisions that are involved...Ch. 6 - Prob. 2QCh. 6 - Describe the four basic types of production...Ch. 6 - What are the major cost factors considered in...Ch. 6 - What kind of information do the following...Ch. 6 - What does process planning entail? How would...Ch. 6 - Explain the basic steps involved in process...
Ch. 6 - Our thinking process, limited by the paradigms...Ch. 6 - Describe the factors often overlooked in the...Ch. 6 - Briefly discuss the components of digital or smart...Ch. 6 - Create a flowchart for the process of building...Ch. 6 - Prob. 13QCh. 6 - Construct a process flowchart of a process with...Ch. 6 - Create an operations chart for making pancakes.Ch. 6 - Prob. 3PCh. 6 - T.W. Smitty is confident that demand for his Smart...Ch. 6 - Patricia Zell, a dollmaker from Olney, Maryland,...Ch. 6 - Although it will fulfill her lifelong dream,...Ch. 6 - Prob. 7PCh. 6 - The school cafeteria can make pizza for...Ch. 6 - Prob. 9PCh. 6 - NanoTech is ready to begin production of its...Ch. 6 - Creative Designs makes intricate jewelry out of...Ch. 6 - Prob. 12PCh. 6 - Prydain Pharmaceuticals is reviewing its employee...Ch. 6 - Gemstone Quarry is trying to decide whether to...Ch. 6 - Tribal Systems, Inc., is opening a new plant and...Ch. 6 - Lydia and Jon order their holiday gifts online....Ch. 6 - Prob. 17PCh. 6 - Three Bags Full is a small grocery store chain in...Ch. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - Sized Rite is trying to determine how best to...Ch. 6 - Prob. 22PCh. 6 - Devonte Price is a self-published author finishing...Ch. 6 - Prob. 1.1CPCh. 6 - Prob. 2.1CPCh. 6 - Prob. 2.2CPCh. 6 - Prob. 2.3CPCh. 6 - Prob. 2.4CP
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