There are two competing alternatives in your textile business. A-type Tufting Machine costs $10,000 and B-Type Tufting Machine costs $10,000. A-type Tufting Machine can result in $7,000 labour savings in the first two years and $10.000 in year three. B-type Tufting Machine can result in $11.000 labour savings in the first two years. Assume MARR=20%. and find the difference between the net present worth of these two alternatives using infinite planning horizon with project repeatability. a) Between $6.480 and $6,700 b) Between $5.480 and $5,700
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Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
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- WAI knows from historical records that approximately 40percent of its labor is used in Department 101 and 60 percentis used in Department 102. Th e reverse is true of machine time;60 percent is used in Department 101 and 40 percent is used inDepartment 102.(a) Calculate the labor and machine hours needed inDepartment 101 for each period of the MPS developed inProblem 4.(b) Calculate the labor and machine hours needed inDepartment 102 for each period of the MPS developed inProblem 4.Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000.Units sold 1,217Sale price each $1,700Total labor hours 46,672Wage rate $12/hourTotal materials $60,000Total energy $4,000Calculate the productivity in sales revenue/labor expenseYou are employed at ABC Computer Inc. as an engineer in their computer architecturedivision that produces the ABC-8 a desktop computer system. There are four possibleperformance improvements. However, the budget will only allow for only oneimprovement. Your boss wants you to recommend the improvement that will provide thegreatest speedup and provide supporting justification. The options are listed below.Operation Percentage of Use Time BeforeEnhancementRead 25% 800nsWrite 15% 950nsProcessing 50% 8nsI/O 10% 500μs (micro-second)• Option A: Reduce the time needed for the Read operation to 600 ns.• Option B: Reduce the time needed for the Write operation to 550 ns.• Option C: Reduce the time needed for the Processing operation to 6 ns.• Option D: Reduce the time needed for the I/O operation to 350 µs (microsecond)
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- A fundamental trade-off in the design of any business system is between efficiency and flexibility: one can't have ultimate efficiency and infinite flexibility at the same time. The simplification and standardization required to improve the efficiency of an operation inevitably restrict the things the system can do. In addition, the short-term changes and decisions needed to make an operation more flexible inevitably disrupt the smooth and predictable process flow needed for optimal efficiency. In the readings, you have seen that different system design philosophies and tools tend to generate different balances between efficiency and flexibility, which, in theory, allows you to design a system with the optimal balance between the two. As you have learned, the optimal balance between efficiency and flexibility depends on the competitive environment an organization expects to face in the future. You have also learned in this course that the future is notoriously hard to predict,…An injector machine goes down roughly 20% of the time (the injector gums up and needs to be cleaned, a quick process). One operator is assigned to service three identical such machines. Each machine can produce 100 parts/h if running properly (i.e., not down). The operator is paid $10/h and each machine costs $20/h to operate. Consider 8hr/shift a) Please fill in the table below: b) How many parts can you produce per shift? c) What is the unit cost fper part for this operation? d) If you hire another operator at the same rate to assist the first operator, what is the unit cost now? e) Is it worth hiring another operator at the same rate to assist the first operator, in case more than one machine goes down at the same time?Bagot Copy Shop has a volume of 125,000 black-and-whitecopies per month. Two salespeople have made presentationsto Gordon Bagot for machines of equal quality and reliability.The Print Shop 5 has a cost of $2,000 per month and a variablecost of $.03. The other machine (a Speed Copy 100 ) will costonly $1,500 per month, but the toner is more expensive, drivingthe cost per copy up to $.035. If cost and volume are the onlyconsiderations, which machine should Bagot purchase?