OPEARATIONS MANAG.REV CUSTOM 2017
17th Edition
ISBN: 9781323590058
Author: Pearson
Publisher: PEARSON C
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Chapter 7.S, Problem 19P
Given the data in Problem S7.17, at what volume (units) of output would the two alternatives yield the same profit?
• S7.17 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
- a. What is the break-even point in units for proposal A?
- b. What is the break-even point in units for proposal B?
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Chapter 7 Solutions
OPEARATIONS MANAG.REV CUSTOM 2017
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - How is actual, or expected, output computed?Ch. 7.S - Explain why doubling the capacity of a bottleneck...Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
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