A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,000 per day, while two machines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer, and revenue will be $45 per customer. a. Determine the break-even point for each range. b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?
Q: duction? Ex
A: Capacity refers to a framework's potential for creating merchandise or conveying administrations…
Q: How to calculate Daily capacity for each resource? I have the demand for each product, there is 24…
A: Daily capacity is the production capacity of the company in a day.
Q: 11. A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows:…
A: The period of time between a client placing an order and the firm fulfilling it is known as the…
Q: A seed company has a design capacity of 80 metric tonnes per day. It's effective capacity, However,…
A: Design capacity is 80 metric tonnes per day, effective capacity is 64 metric tonnes per day, and…
Q: A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual…
A: Find the Given details: Given Details: Machine Cost Machine Cost ($) A…
Q: A manager must decide how many machines of a certain type to purchase. Each machine can process 100…
A: Let the break-even point for one machine be x,
Q: What is capacity planning and explain with examples?
A: Capacity planning is nothing but the process through which a company sees how much work it can…
Q: Beth’s Bakery can comfortably produce 60 brownies in oneday. If Beth takes some unusual measures,…
A: Productivity and output have a direct relation with the input. More the input more is the output. We…
Q: c) If the labor capacity of the bakery was 11 man * hour, what would be the maximum value of the…
A: Given that: MAX Z = 2x1 + 3x2 + 3.25x3subject to0.1x1 + 0.15x2 + 0.2x3 <= 150.05x1 + 0.15x2 +…
Q: Collins Title Insurance Ltd. wants to evaluate its labor and multifactor productivity…
A: Here, we could see that both the labour productivity and multifactor productivity data are needed to…
Q: A small firm intends to increase the capacity of a bottleneck operation by adding a new machine.Two…
A:
Q: What is the anticipated production?
A: Dear Student Here is your Step By Step Solution: Number of Process Lines: 3 Operating days: 7…
Q: If a plant has an effective capacity of 6,500 andan efficiency of 88%, what is the actual (planned)…
A: A product is a tangible substance that is offered in the market to satisfy the desire or requirement…
Q: How much capacity has been used? d. If the variable cost is increased to $55, what is the percent…
A: A breakeven point is a point of no profit or loss. Breakeven point = fixed cost/(selling price per…
Q: Identify the process's existing capacity and determining whether the process's present capacity…
A: The capacity of a manufacturing unit can be expressed in terms of the number of quantities…
Q: The Sail-Sea is a boat manufacturer. The assembly location is available for production of 60 boats…
A:
Q: A process currently services an average of 41 customers per day. Observations in recent weeks show…
A: Given data: Average customers per day = 41 Current utilisation = 90% = 0.90 The management wants a…
Q: If a workstation can produce 1000 units in 100 hours and the actual workstation efficiency is only…
A: If , the workstation can produce 1000 units in 100 hours, then the standard output rate for 2000…
Q: Manager must decide how many machines of a certain type to purchase. Each machine can process 100…
A: The Break-even point is the point at which the production cost and production revenue are equal for…
Q: Describe what would a capacity in chunks mean and why is it a consideration in capacity planning?
A: Organizations can ensure that their existing delivery capabilities are enough to meet long-term…
Q: A small firm intends to increase the capacityof a bottleneck operation by adding a new machine. Two…
A: Given data is Annual fixed costs for A = $54,000 Annual fixed costs for B = $27,000 Variable cost…
Q: A telephone company have a production capacity of 500,000 units per month. At its present capacity…
A: Given- Production capacity = 500,000 units per monthMonthly income = ₱350,000,000Monthly…
Q: 5 A ) A small office has 4, 4-lamp fixtures. It takes 45 minutes to clean and re-lamp the entire…
A:
Q: 1. Determine the utilization and the efficiency for each of these situa a. A loan processing…
A: Calculations: Formula:
Q: Green Grass’s plant manager just received marketing’s latest forecasts of Big Broadcaster sales for…
A: a. Convert the desired output rate (i.e 2,400 units per week) to an hourly rate by dividing the…
Q: What are the steps to follow in capacity management?
A: Capacity is the ability to store, produce, or achieve. In any organization, capacity is termed as…
Q: A small firm intends to increase the capacity of a bottleneck operation for producing a product by…
A: Given: Fixed cost A = $30000 Fixed cost B = $25,000 Unit variable cost A = $10 Unit variable cost B…
Q: Mariah Enterprises makes a variety of consumer electronic products. Its camera manufacturing plant…
A:
Q: The following diagram describes a service process where customers go through through either of two…
A: The lowest capacity is Operation 2, which is 10 per hour when compared operation 1, 2, and 3. The…
Q: An executive conference center has the physical ability to handle 1,100 participants. However,…
A: Efficiency = Actutal output * 100 Effective capacity Utilization = Actutal output…
Q: Smart Kids Wonderland has decided to manufacture a new train toy set. The production process…
A: What is a network diagram in project management? If you're a project coordinator or a person…
Q: Likert Scale definition and an example!
A: Likert scale is a scale used to rate a customer's responses, which is used to evaluate how much…
Q: What are ADDITIONAL CHALLENGES OF PLANNING SERVICE CAPACITY?
A: Service capacity can be defined as the volume a service can handle at the same time maintaining its…
Q: a) Determine the company's cost function, including their total fixed costs and variable costs per…
A: We are given the selling price = 300 euros, maximum production= 12000 units, total cost= € 1,380,000…
Q: Assume that only purchasing costs are being considered. Which machines would have the lowest total…
A: The machine with the lowest total cost can be computed as below:
Q: A manager must whether to buy machine A or B. Machine costs are as follows: A $52,000 each; B…
A: Given-
Q: What are theoretical capacity, rated capacity, utilization, and efficiency? How are they related?
A: Theoretical capacity can be defined as the level of a manufacturer's creation that would be achieved…
Q: Sales last year for a department were $98,600. This year planned sales are forecast to decrease by…
A: Find the Given details below: Given details: Sales 98600 $/Year Decrease 1.5 %
Q: A manager has to decide how much to buy a certain type Each machine can handle 100 customer services…
A: Given data, Fixed cost for one machine = $ 2000 per day For two machines = $ 3800 per day Variable…
Q: Two different manufacturing processes are being considered formaking a new product. The first…
A: Process 1 (less capital intensive): Fixed Cost = $46,400 Variable Cost = $720 per unit Process 2:…
Q: n the bakery, we have established that design capacity is 30 pies per day and effective capacity is…
A: Given data is Design capacity = 30 pies per day Effective capacity = 20 pies per day Output = 27…
Q: $1,800. If the firm chooses to refurbish the equipment, materials and labor will be $1.10 per board.…
A: Given - Cost of Refurbish = $800 and Material & labor cost = $1.10 per board Cost of Major…
Q: Levand foods makes Cans if premium dog food and it has one production line which can produce a…
A: Production is the process of converting raw materials and resources into finished products and…
Q: a. Determine the break-even point for each range. h. If estimated demand is 90 to 120 customers per…
A: The breakeven point is the level of production where the costs of production are equal to the…
Q: Mariah Enterprises makes a variety of consumer electronicproducts. Its camera manufacturing plant is…
A: Value of process output for component A =$175 Value of process output for component B =$140 The…
Q: A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows:…
A: Find the Given details below: Given details: Machine Cost ($) A 40000 B 30000 C 80000…
A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,000 per day, while two machines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer, and revenue will be $45 per customer.
a. Determine the break-even point for each range.
b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A small firm intends to increase the capacity of a bottleneck operation for producing a product by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $30000 for A and $25,000 for B; variable costs per unit would be $10 for A and $12 for B; and the revenue per unit would be $25. i. Find the total cost functions for alternatives A and B, and the revenue function ii. Draw both the total cost functions and the revenue function in the same figure. iii. Find the break-even point for the alternatives A and B and show it in the figure iv. Is there any volume of output at which both the alternatives yield the same profit? If so, show it in the figure. If not, identify the volume of output at which the alternatives are indifferentA small business owner is contemplating the addition of another product line. Capacity increases and equipment will result in an increase in annual fixed costs of $50,000. Variable costs will be $25 per unit.A) What unit selling price must the owner obtain to break-even on a volume of 2,500 units a year?B) Because of market conditions, the owner feels a revenue of $47 is preferred to the value determined in part A. What volume of output will be required to achieve a profit of $16,000 using this revenue?In a job shop, effective capacity is only 43 percent of design capacity, and actual output is 71 percent of effective output. What design capacity would be needed to achieve an actual output of 11 jobs per week? What is its effective capacity?a. The Design Capacity needed to achieve the required actual job outputs = (round to whole number)b. The Effective Capacity needed to achieve the required actual job outputs = (round to whole number)
- A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18. a. Determine each alternative’s break-even point in units. (Round your answer to the nearest whole amount.) b. At what volume of output would the two alternatives yield the same profit (or loss)? (Round your answer to the nearest whole amount.) c. If expected annual demand is 15,000 units, which alternative would yield the higher profit (or the lower loss)?A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.) Total…A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unit would be $10 for A and $11 for B; and revenue per unit would be $15. a. Determine each alternative’s break-even point in units. b. At what volume of output would the two alternatives yield the same profit? c. If expected annual demand is 12,000 units, which alternative would yield the higher profit?
- Mariah Enterprises makes a variety of consumer electronicproducts. Its camera manufacturing plant is consideringchoosing between two different processes, named Alphaand Beta, which can be used to make two component partsA and B. To make the correct decision, the managers wouldlike to compare the labor and multifactor productivity ofprocess Alpha with that of process Beta. The value of processoutput for component A and B are $175 and $140 per unit,respectively. The corresponding overhead costs are $6,000and $5,000, respectively Process Alpha Process BetaProduct A B A BOutput (units) 50 60 30 80Labor ($) $1,200 $1,400 $1,000 $2,000Material ($) $2,500 $3,000 $1,400 $3,500a. Which process, Alpha or Beta, is more productive?b. What conclusions can you draw from your analysis?Green Grass’s plant manager just received marketing’s latest forecasts of Big Broadcaster sales for the nextyear. She wants its production line to be designed to make 2,400 spreaders per week for at least the nextthree months. The plant will operate 40 hours per week.a. What should be the line’s cycle time?b. What is the smallest number of workstations that she could hope for in designing the line for thiscycle time?c. Suppose that she finds a solution that requires only five stations. What would be the line’s efficiency?A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 Click here for the Excel Data File a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole…
- An executive conference center has the physical ability to handle 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event, although forecasted to have 1,000 participants, resulted in the attendance of only 950 participants. What are the utilization and efficiency of the conference facility?A manager has to decide how much to buy a certain type Each machine can handle 100 customer services per hour. The fixed cost of one machine per day is $2000; the fixed cost of two machines is 3800 US dollars per day. The variable cost is $20 per customer and the revenue is $45 per customer. 1) Calculate their breakeven points. 2)if the expected demand is 90-120 customers per hour, how many machines should be purchased?Need Help for Lettter C and D please.!!PROBLEM #3A plant operation has fixed costs of $2,000,000 per year,and its output capacity is 100,000 electrical appliancesper year. The variable cost is $40 per unit, and theproduct sells for $90 per unit.a. What is the break-even point in terms of units?b. What is the break-even point in terms of dollars?c. How much capacity has been used?d. If the variable cost is increased to $55, what is thepercent reduction (or increase) to the profit? What isthe break-even point in units now?