If a workstation can produce 1000 units in 100 hours and the actual workstation efficiency is only at 85%, what will be the approximate actual hours needed if the demand is 2,000 units?
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If a workstation can produce 1000 units in 100 hours and the actual workstation efficiency is only at 85%, what will be the approximate actual hours needed if the demand is 2,000 units?
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- Two manufacturing processes are being considered for making a new product. Process A is less capital intensive, with fixed costs of $60,000 per year and variable costs of $700 per unit. Process B has fixed costs of $400,000 annually, with variable costs of $300 per unit. What is the break-even quantity for the two processes? If annual sales are expected to be 700 units, which process should be selected? Operations and Engineering have found a way to reduce the cost of Process B, such that the fixed costs for this process decrease from $400,000 to $300,000 annually. All other costs remain the same. Does this change the process selection for the annual sales volume of 700 units?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 beenestimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unitwould be $10 for A and $11 for B; and revenue per unit would be $15.c. If expected annual demand is 12,000 units, which alternative would yield the higher profit?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 indifferent
- A process currently services an average of 50 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 75 percent of the current level in five years and management wants to have acapacity cushion of just 5 percent, what capacity requirement should be planned?A biotech firm is considering abandoning its old plant, built 23 years ago, andconstructing a new facility that has 50% more square footage. The original cost of the old facility was $300,000, and its capacity in terms of standardizedproduction units is 250,000 units per year. The capacity of the new laboratoryis to be 400,000 units per year. During the past 23 years, costs of laboratoryconstruction have risen by an average of 5% per year. If the cost-capacity factor, based on square footage, is 0.80, what is the estimated cost of the newlaboratory?two different manufacturing processes are being considered for making a new product. the first process is less capital intensive, with fixed costs of only $50,000 per year and variable costs of $700 per unit. the second process has fixed costs of $400,00 but has variable costs of only $200 per unit a. what is the break even quantity beyond which the second process becomes more attractive than the first? b. if the expected annual sales for the product is 800 units, which process would you choose?
- 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 beenestimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unitwould be $10 for A and $11 for B; and revenue per unit would be $15.b. At what volume of output would the two alternatives yield the same profit?The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of three departments are shown: Compute the expected production for next quarter for each department.A process currently services an average of 61 customers perday. Observations in recent weeks show that its utilizationis about 90 percent, allowing for just a 10 percent capacitycushion. If demand is expected to be 80 percent of the cur-rent level in five years and management wants to have acapacity cushion of just 4 percent, what capacity requirementshould be planned?
- A). A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $150 per unit. What is the break-even point for this operation? What is the profit (or loss) on a demand of 200 units per year? B). A newly opened bed-and-breakfast projects the following: Monthly fixed costs $10,000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 How many rooms would have to be occupied per month in order to break even?A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 28,500 units of output each month. However, it has an absolute maximum output capability of 35,000 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 22,120 units in October, what is the capacity utilization rate in October for this factory? (Round your answer to 1 decimal place.)