OPERATIONS MANAGEMENT: SUSTAIN ACCESS C
OPERATIONS MANAGEMENT: SUSTAIN ACCESS C
13th Edition
ISBN: 9780135662076
Author: HEIZER
Publisher: PEARSON
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Chapter 8, Problem 6DQ
Summary Introduction

To determine: The advantages and disadvantages of a qualitative approach to location decision making.

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3) Rane Brake Linings manufactures brake pads in a process focused facility; the fixed costs are nine thousand dollars per year, the variable cost is fifty dollars per brake pad, each brake pad sells for two hundred dollars.   a) Calculate the breakeven point (in units) for this operation. b) Calculate the breakeven point (in $) for this operation. c) Calculate the profit/loss on a demand of two hundred brake pads per year.   Note: You could work out the problem by hand or use excel; in chapter 5, section 5.11 of the Stevenson text, evaluating alternatives (cost volume analysis) is covered with examples; chapter 5 Stevenson lecture power point slides 34 to 44 (chapter 5 lecture: 29.49 mins to 38.87 mins) cover cost volume analysis with examples.
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