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- Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach 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?California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replacethe old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $85,000 per month and a variable cost of $1.25 per bag. Clunker has a fixed cost of only $44,000 per month, but a variable cost of$ 1.75. Selling price is $2.50 per bag.a) What is the crossover point in units (point of indifference) for the processes?b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 60,000 bags per month? c) What is the monthly profit or loss if the company stays with Clunker and sells 60,000 bags per month?NAME q, Snake Food Department, and the Bird Food Department. The following Budgeted cosis of on per year Variable costs per tech. Dog Food Dept. Snake Food Depl. Bird Food Deet. Budgeted amounts are used to calculate the allocation robes. Actual usage of technician hours for the year was: Using the dual - rate cost - allocation method, what is the tolal amount of testing labortion, costs that will be budgeted variable costs per bour and budgeted usage. a budgeted fixed costs per hour and budgeted usage.
- Note- need correct option without explanation as fast as possible!! Which of the following is the least likely decision to be made by Operations Managers? A)How much capacity is required to balance demand B)Designing and improving the jobs of the workforce C)Selecting the location and layout of a facility D)How to use quality techniques to reduce waste E)Deciding which market areas to manufacture products forUsing the data in "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach 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?a) What is the brea k-even point in dollars for proposal A if youadd $10,000 installation to the fixed cost?b) What is the break-even point in dollars for proposal B if youadd S l 0,000 installation to the fixed cost?What are the techniques available to operations managers to deal with a bottleneck operation? Which of thesedoes not decrease throughput time?
- What volume (units) of output would the two alternatives yield the same profit? "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach 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?"California Gardens, Inc., prewashes, shreds, and dis-tributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replacethe old machine, referred to in the shop as “Clunker.” Hi-Speedwill have a fixed cost of $85,000 per month and a variable costof $1.25 per bag. Clunker has a fixed cost of only $44,000 permonth, but a variable cost of $1.75. Selling price is $2.50 per bag.a) What is the crossover point in units (point of indifference) forEric Limon/ Shutterstock the processes? b) What is the monthly profit or loss if the company changes tothe Hi-Speed shredder and sells 60,000 bags per month?c ) What is the monthly profit or loss if the company stays withClunker and sells 60,000 bags per month?Monique Food Processing Company produces light snacks that can be heated in a microwave. The following steps are included in the process: Steps Description Capacity (Units/Hour) 1 Prepare food 200 2 Measure and place in plastic pouch 175 3 Prepare cardboard box 200 4 Insert pouch into box 300 5 Shrink-wrap box 200 What are the key factors that determine when to add capacity? Why would an organization want to reduce its capacity?
- Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation byadding 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 revenuegenerated 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?Defintion of the word "what-if" For capacity planning, how may a spreadsheet be utilized?Mikey W. Smitty is confident that demand for his “WesternRap” CD will substantially exceed the break-even point computed in Problem 6-3. So, Mikey is contemplating hav-ing his CD cut at a classier (and pricier) studio. The cost to record the CD would rise to $9000. However, since thisnew studio works with very high volume, production costswould fall to $2 per CD.a. What is the breakeven point for this new process?b. Compare this process to the process proposed in theprevious problem. For what volume of demand shouldMikey choose the classier studio?