14 Problem 5-12A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. Onemachine will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs willbe $17 per customer, and revenue will be $45 per customer.a. Determine the break-even point for each range. (Round your answers to the next whole number.)One machineTwo machinesb. If estimated demand is 90 to 120 customers per day, how many machines should be purchased?(Click to select V(Click to select)One machineTwo machines

Given- Machine capacity = 100 customers/dayOne Machine Fixed cost = $2100 per dayTwo Machine Fixed…

Answered: Problem 5-12 A manager must decide how…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P

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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?
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?
EMV APPLIED TO CAPACITY DECISION Southern Hospital Supplies, a company that makes hospital gowns, is considering capacity expansion.APPROACH: c Southern’s major alternatives are to do nothing, build a small plant, build a medium plant, or build a large plant. The new facility would produce a new type of gown, and currently the po-tential or marketability for this product is unknown. If a large plant is built and a favorable market ex-ists, a profit of $100,000 could be realized. An unfavorable market would yield a $90,000 loss. However, a medium plant would earn a $60,000 profit with a favorable market. A $10,000 loss would result froman unfavorable market. A small plant, on the other hand, would return $40,000 with favorable marketconditions and lose only $5,000 in an unfavorable market. Of course, there is always the option of doingnothing.Recent market research indicates that there is a .4 probability of a favorable market, which meansthat there is also a .6 probability of an…
31 please help me please!A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 19,200 units output each month. However, it has an absolute maximum output capability of 23,000 units per month, and can produce as little 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 13,280 units ir October, what is the capacity utilization rate in October for this factory? Note: Round your answer to 1 decimal place.
What are ADDITIONAL CHALLENGES OF PLANNING SERVICE CAPACITY?
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?
Using the information from Module 7 Problem 1 Part A: Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $63,000, and for proposal B, $27,000. The variable cost for A is $12, and for B, $15. The revenue generated by each unit is $19. At an expected volume of 6,700 units, which alternative should be chosen? Be sure to show your work.
Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The revenue generated by each unit is $18.a) What is the crossover point in units for the two o ptions?b) At an expected volume of8,300 units, which alternative shouldbe chosen?
Differentiate between design capacity and capacity utilization. Briefly describe three capacity expansion strategies. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percentage utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 84 customers for this flight segment in three years, and management requires a capacity cushion of 25 percent, calculate the following:- the planned capacity requirement. the maximum number of customers the flight segment can accommodate. the efficiency rate of the flight segment assuming that the current effective capacity of the flight segment is 93 customers.
The Ranch Development Project was undertaken by two real estate companies in the Colorado high country and several investors from Oklahoma. The idea was to convert the working ranch into a luxury single-family development. The project became known as The Ranch. The average home price was $475,000, and it was not uncommon to have homes valued at more than $1 million. The center of the development was a first-class 18-hole golf course. Green fees could approach $100 per day, depending on services required. Some have claimed that the course is one of the best in Colorado. The Ranch also had a four-star restaurant located in a beautiful and spacious log cabin, which included a fireplace big enough for a 6-foot-tall person to walk into without hitting his head. Other amenities included a heated pool, lighted tennis courts, and a complete workout center. Free shuttle service was provided to the ski slopes a few miles away. To preserve the beauty of the area and to enhance property values,…
Stapleton Manufacturing intends to increasecapacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is$65,000, and for proposal B, $34,000. The variable cost for A is$10, and for B, $14. The revenue generated by each unit is $18.a) What is the crossover point in units for the two options?b) At an expected volume of 8,300 units, which alternativeshould be chosen?
Post your response to the following discussion questions: 1. How will new hotel policies affect capacity planning and occupancy rates? 2. What impact might new policies have on service capacity, particularly in terms of housekeeping staff? Please write atleast two paragraphs per question

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