Operations Management: Sustainability and Supply Chain Management Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
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Chapter C, Problem 15P

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•• C.9 For the following Gregory Bier Corp. data, find the starting solution and initial cost using the northwest-corner method. What must you do to balance this problem?

Chapter C, Problem 15P, Question:  C.9 For the following Gregory Bier Corp. data, find the starting solution and initial

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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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