Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $83,000 and a variable cost of $13, with a capacity of16,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $58,000. The variable cost will be higher, at $18 per unit. Each unit is expected to sell for $23.a) What is the crossover point (point of indifference) for the two machines?The crossover point for the two machines isunits. (Round your response to the nearest whole number.)Clear allCheck answer11:47 PM

Given Machine A Fixed cost = $83,000Variable cost = $13 Capacity = 16,000 units

Answered: Nagle Electric, Inc., of Lincoln,…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $77,000 and a variable cost of $18, with a capacity of 14,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $62,000. The variable cost will be higher, at $22 per unit. Each unit is expected to sell for $29. a) What is the crossover point (point of indifference) for the two machines? The crossover point for the two machines is units. (Round your response to the nearest whole number.) b) What is the range of units for which machine A is preferable? Machine A is preferable at a level of production units. (Enter your response as a whole number.) c) What is the range of units for which machine B is preferable? Machine B is preferable at a level of production units.(Enter your response as a whole number.)
Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $77,00 and a variable cost of $12,with a capacity of 12,000 units per year. Machine B is slower, with a speed of one-half of A's, but the fixed cost is only $65,000. The variable cost will be higher, at $17 per unit. Each unit is expected to sell for $27. a) What is the crossover point (point of indifference) for the two machines?_______ The crossover point for the two machines is _________units.
Nagle Electric, Inc., of Lincoln, Nebraska, mustreplace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $75,000and a variable cost of $16, with a capacity of 18,000 units peryear. Machine B is slower, with a speed of one-half of A’s, butthe fixed cost is only $60,000. The variable cost will be higher,at $20 per unit. Each unit is expected to sell for $28.a) What is the crossover point (point of indifference) in unitsfor the two machines?b) What is the range of units for which machine A ispreferable?c) What is the range of units for which machine B is preferable?
An equipment installation job in the completion stage can be completed in 40 days of 8 hours day work with 40 men working. With the contract expiring in 30 days, the mechanical engineer contractor decided to add 10 men on the job, overtime not being permitted. If the liquidated damages is P2,000 per day of delay, and the men are paid P80 per day, will the engineer be able to complete the job on time? Would he save money by adding more men?
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