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- A 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 an eff ort to increase capacity in Work Center 111 forweek 13, Yankee Machine Shop has authorized overtime. Th ework center will be staff ed 12 hours per day for six days. Becauseof the additional stress on the three machines, it is expected thatthe utilization rate will drop to 85 percent. Th e effi ciency rate isexpected to fall to 80 percent.(a) Calculate the capacity available in Work Center 111 forweek 13.(b) Will this plan provide suffi cient capacity to completethe orders given in Problem 23? If not, what do yourecommend be done?c. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following:-i. the planned capacity requirement.ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.
- Determine the utilization and the efficiency for each of these situations:a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective capacity is five furnaces a day.c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain.1. The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 500 boxes per day, in two 8- hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 300 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. a) What is the firm's multifactor productivity before the changes? b) What is the firm's multifactor productivity after the changes?b. The Healthy Food Restaurant, a 24-hour restaurant, faces changing requirements from hour tohour. More workers are needed for peak hours, and fewer are needed in between. The followingTable 6 (below) shows the worker requirement for the first 12 hours in the restaurant:Table 6. Staff Requirement at the Healthy Food RestaurantTime Period 10AM11AM12PM1PM2PM3PM4PM5PM6PM7PM8PM9PMRequirement 8 10 12 12 9 7 6 7 9 10 12 8AssignedOn DutyOverstaffed8(i) You are required to apply the first-hour principle to staff each hour with the required number ofcafeteria staff, showing how many staff are on duty each given hour, the number of staffyou have assigned to work each hour and any overstaffing for each hour. i. Schedule the staff to work in 8-hour shifts.
- 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?Avis Company is a car rental company that is located three miles from the Los Angeles airport (LAX). Avis is dispatching a bus from its offices to the airport every 2 minutes. The average traveling time (round-trip) is 20 minutes.a. How many Avis buses are traveling to and from the airport?b. The branch manager wants to improve the service and suggests dispatching buses every 0.5 minutes. She argues that this will reduce the average traveling time from the airport to the Avis offices to 2.5 minutes. Is she correct? If your answer is negative, what will the average traveling time be?The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of three depart-ments are shown: DEPARTMENT EFFECTIVE CAPACITY RECENT EFFICIENCYDesign 93,600 .95Fabrication 156,000 1.03Finishing 62,400 1.05Compute the expected production for next quarter for eachdepartment.
- (4-a) a. A manufacturing company wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The annual fixed costs for machine A are $20,000 and for machine B, $35,000. The variable cost for A is $12 per unit and for B, $8. The revenue per unit is $30. Identify the annual production volumes for which each of the machines would be chosen.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?1. The RitePak company produces packing boxes for the food industry. Old production system allowed the company to make 600 boxes per day (in one 8-hour shift). The company has recently introduced a new production system and conducted appropriate job training, so that production levels have increased to 750 boxes per day (in one 8-hour shift). Labor costs remain the same and average $120 per day for each of the 5 full-time workers. Capital costs were previously $3,000 per day, and increased to $3,200 per day with the new equipment. Energy costs were unchanged at $700 per day. Please compute the firm’s labor productivity and multifactor productivity before and after the changes. Write your final answer in the table below. Show work, and use 2-decimal accuracy when necessary. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.