Which one of the following is false? d. An accounting firm does not need operations management.
Which one of the following policies is stated in the syllabus or the student guideline power point slides for DS 412? D) All students are asked to provide a valid e-mail address on "iLearn".
What are an organization’s goals based on? d. Its mission
Operations Management includes all of these activities except: b. Assessing consumer wants and needs
Which one of the following is one of the key differences between how manufacturing and service operations is managed? d. Services generally can 't be stored.
Which of the following are (always) true about Naive and Moving Average forecasting methods? II. Moving Average method is not appropriate
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The primary location being considered will have fixed costs of $9200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. What is the breakeven point? FC/P-VC=9,200/.90-.70=46,000 (Profit=P(Q)-[FC+V(Q)])
A company manufactures a product currently using two machines. Each machine averages 225 units of the product per day. However, annual demand is forecasted to reach 150000 units of product in year 2013. How many machines in total should the company plan to use in order to be able to satisfy demand in the future? Assume 240 workdays per year. 225x240=54,000 so 150,000/54,000=2.78 or 3
If the outcome of a decision under risk or uncertainty environments is bad then that decision was definitely a bad one..........FALSE
Steve has a choice of one of three ways of going to school. The time it takes for him to travel not only depends on which way he travels, but also on the weather that day. The following is a decision table giving the minutes to school under each weather condition. |Sunny|Rainy|
Route 280|25|60|
Highway 101|30|45|
19th
Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.
Breakeven Analysis for Product Tylenol Approach 1 - Same price as Tylenol Approach 2a - Cheaper than Tylenol Approach 2b - Cheaper w/lowered trade cost $ $ $ $ Unit Cost (Variable Cost) 0.60 0.60 0.60 0.60 Trade Cost (Selling Price to Retailers) $ 1.69 $ 1.69 $ 1.05 $ 0.70 Fixed Cost (Advertising) 2,000,000 6,000,000 6,000,000 6,000,000 Break-Even Quantity [Fixed Cost/(Trade Cost-Unit Cost)] 1,834,862 5,504,587 13,333,333 60,000,000 Contribution Margin (Unit) 64% 64% 43% 14%
10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
In, 8 hours a day, the company can produce 60 * 8 * (1/0.5) = 960 shirts, which is the current production capacity. But it needs to produce only 800 shirts.
To find the break-even point for napkins, you use the same formula. The fixed cost is still $420,000.00. The selling price of napkins is $7.00. The variable cost is $4.50. $7.00 minus $4.50 is $2.50. So then you take $420,000.00 and divide it by $2.50 to find the breaking point of $168,000.00. The company will have to sell $168,000.00 to break even in sales. The margin for safety for napkins is -$48,000.00. This is found by subtracting the actual or expected cost of $120,000.00 by the break-even point of $168,000.00. You can cut sales by $48,000.00 and not sustain a loss.
Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure? [3 points]
In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.
The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand in three categories low, medium and high.
The break-even point is the volume that equates total revenue with total cost and profit is zero. Student Response True Score: 2/2 Value 100% Correct Answer True
The financial breakeven point considers how many units it would take in the first year to bring the company’s NVP to zero. To do this, fixed cost (rent included) must be added to the operating cash flow and then divided by the contribution margin. In this case, 30,000 units would need to be sold.
4. Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break-even volume for the
In the case study, as the annual fixed cost is $6,000,000 and the contribution margin per event is $1,900. Therefore, the breakeven point is at the 3,158
Breakeven = fixed cost/margin = total dollar fixed costs/ unit selling price –unit variable costs
The major differences between goods and services in operations management are their goods, inventory, customers, labor and location. One major difference in the tangibility of their output. For example, a service firm would entail consultancy, training or maintenance, this is an intangible product. These services are not tangible object, but still provide a “product” for the customer. A good would be a tangible for the consumer. A company manufactures a certain product and the consumer is able to physically receive it. For example, A manufacturer such as Coke, Nestle, Honda and BMW. Another difference between a service and goods is their inventory. Service forms do not hold inventory, they provide a service when their customers ' need it. Manufacturers produce goods which creates an inventory. Inventory levels are created through supply and demand. A lot of companies only have a certain level of inventory in order to utilize their “space”. In addition a major difference between goods and services is their customer relationship. There is a high customer contact in the service industry. The service industry caters to their clients; meaning they adjust their service to the needs of the customer. For example, a consulting firm may only need to do four hours of work with a certain customer and twelve hours with another. In manufacturing goods there is low customer contact. Manufactures can produce their customers goods without having them submit an order, because they can