OPERATIONS MANAGEMENT W/ MYLAB <C> 2018
18th Edition
ISBN: 9781323875476
Author: HEIZER
Publisher: Pearson Custom Publishing
expand_more
expand_more
format_list_bulleted
Question
Chapter 7.S, Problem 22P
a)
Summary Introduction
To determine: The break-even point in dollars.
Introduction:
Break-even point (BEP):
The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.
b)
Summary Introduction
To determine: The break-even point in the number of copies.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You are considering opening a copy service in the student union. You estimate your fixed cost a $21,000 and the variable cost of each copy sold at $0.02. You expect the selling price to average $0.08.
a) Based on the given information, the break-even point in dollars = $______(round your response to the nearest whole number).
A local toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows:
Light Demand
Moderate Demand
Heavy Demand
Probability
0.25
0.45
0.3
Wind-up action
$325,000
$190,000
$170,000
Pneumatic action
$300,000
$420,000
$400,000
Electrical action
-$400,000
$240,000
$800,000
What is the ultimate objective in the use of decision trees to product design? How is this objective accomplished?
Draw the decision tree.
What is the EMV of each decision alternative?
Which action should be selected?
Strawberries cost $2.28 per pound and bananas cost $2.55 per pound. If Mario buys 2.9 pounds of strawberries and 2.6 pounds of bananas, what is his average cost for fruit per pound?
Chapter 7 Solutions
OPERATIONS MANAGEMENT W/ MYLAB <C> 2018
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - Prob. 4DQCh. 7.S - Prob. 5DQCh. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
Ch. 7.S - Prob. 11DQCh. 7.S - Prob. 12DQCh. 7.S - What are the techniques available to operations...Ch. 7.S - Amy Xias plant was designed to produce 7,000...Ch. 7.S - For the post month, the plant in Problem S7.1,...Ch. 7.S - Prob. 3PCh. 7.S - Prob. 4PCh. 7.S - Prob. 5PCh. 7.S - The effective capacity and efficiency for the next...Ch. 7.S - Southeastern Oklahoma State Universitys business...Ch. 7.S - Prob. 8PCh. 7.S - Prob. 9PCh. 7.S - Prob. 10PCh. 7.S - The three-station work cell illustrated in Figure...Ch. 7.S - The three-station work cell at Pullman Mfg., Inc....Ch. 7.S - The Pullman Mfg., Inc., three-station work cell...Ch. 7.S - Prob. 14PCh. 7.S - 10 minutes per unit. Part 2 is simultaneously...Ch. 7.S - Prob. 16PCh. 7.S - Prob. 17PCh. 7.S - Using the data in Problem S7.17: a) What is the...Ch. 7.S - Prob. 19PCh. 7.S - Prob. 20PCh. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - Prob. 26PCh. 7.S - Prob. 27PCh. 7.S - Prob. 32PCh. 7.S - Prob. 33PCh. 7.S - Prob. 34PCh. 7.S - Prob. 35PCh. 7.S - Prob. 36PCh. 7.S - Prob. 37PCh. 7.S - Prob. 38PCh. 7.S - Prob. 39PCh. 7.S - Prob. 1VCCh. 7.S - a capacity expansion plan and a new 11-story...Ch. 7.S - a capacity expansion plan and a new 11-story...Ch. 7 - Ethical Dilemma For the sake of efficiency and...Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Prob. 16DQCh. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prob. 19DQCh. 7 - Prob. 1PCh. 7 - Usingthedatain Problem 7.1, determinethemost...Ch. 7 - Prob. 3PCh. 7 - Refer to Problem 7.1. If a contract for the second...Ch. 7 - Stan Fawcetts company is considering producing a...Ch. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Metters Cabinets, Inc., needs to choose a...Ch. 7 - Prob. 10PCh. 7 - Nagle Electric. Inc., of Lincoln, Nebraska, must...Ch. 7 - Stapleton Manufacturing intends to increase...Ch. 7 - Prepare a flowchart for one of the following: a)...Ch. 7 - Prepare a process chart for one of the activities...Ch. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 1CSCh. 7 - Prob. 2CSCh. 7 - Prob. 3CSCh. 7 - Process Strategy at Wheeled Coach Wheeled Coach,...Ch. 7 - Prob. 1.2VCCh. 7 - Prob. 1.3VCCh. 7 - Prob. 1.4VCCh. 7 - Alaska Airlines: 20-Minute Baggage...Ch. 7 - Prob. 2.2VCCh. 7 - Prob. 2.3VCCh. 7 - Prob. 2.4VCCh. 7 - Prob. 2.5VCCh. 7 - Prob. 3.1VCCh. 7 - Prob. 3.2VCCh. 7 - Prob. 3.3VCCh. 7 - Prob. 3.4VC
Knowledge Booster
Similar questions
- Two competitors have the cost structure shown below. Which of the following statements are true Firm A Firm B Product 1 Units 500 200 Total costs (P1) $50,000 $18,000 Product 2 Units 500 1200 Total costs (P2) $100,000 $144,000 Total costs (P1 + P2) $150,000 $162,000 A. Firm A should lower its price on Product 2 B. Firm B is the low-cost producer. C. Firm B should lower its price on Product 1 and Product 2 D. Firm A is the low-cost producer E. Both A and B are truearrow_forwardYou are given the following payoff table (in K million), about a cooking oil producer in Lusaka. The company is researching for its 2019 budget production levels. High Demand Average Demand Low Demand Produce 30,000 39 5 -13 Produce 20,000 28 12 9 Produce 12,000 13 4 -10 Probability ? 0.5 0.2 Required: a) Explain the meaning of 39 and -10 in the payoff table. b) What are the expected payoffs for each production level? (Note that you will have to determine the missing probability). c) What is the expected payoff under perfect information? d) How much should the company invest in further market research to obtain perfect informationarrow_forwardThe selling price per box for Cynthia's Cookies is $19.86. Fixed costs are $60,000 and the variable cost per box is $10.19. What is the break-even quantity? Round your answer to the nearest whole number. boxes If sales last year were 8,000 boxes, what was the net profit? Round your answer to the nearest dollar. $arrow_forward
- A group is planning to back the production of a new musical at Lusaka Playhouse. It would cost K100 000 to stage for the first month. If well received by critics, it will be kept on for a further six months earning a profit of K350 000. If critics dislike it, it will close at the end of the first month. There is a 50: 50 chance of a favourable review. Should the group invest in the musical? A business wants to decide whether to launch a new product. If the product is launched there are two elements of uncertainty: 0.70 probability that sales that sales will be 8000 units per month and 0.30 that sales will be 5000 units per month. If sales are 8000 units per month, there is a 0.5 probability that the contribution per unit will be K2 and a 05 probability that it will be negative –K1. With sales of 5000 units there is a 0.6 probability that the contribution per unit will be K3 and a 04 probability that it will be K3 and a 0.4 probability that it will be K1. Advise…arrow_forwardAttached is an image of the Converse Chuck Taylor All Star Sneaker. It sells for approximately R1200 andcan be purchased at retailers like, Edgars, Sport Scene, Total sports, Superbalist and other sneakeroutlets. Q.1 - Is the Converse Chuck Taylor All Star Sneaker a consumer product or an Industrial product? Q.2 - A product is said to have 5 layers: Core, Tangible, Augmented, potential product and product image. Provide an example for the following layers in relation to the Converse Chuck Taylor All Star Sneaker.• Core• Tangible• Product image Q.3 - Converse would like to expand their product mix by adding new product lines. Should they use related or unrelated diversification. Choose one and whyarrow_forwardGiven the price information given in Exhibits 1 and cost information for both companies in Exhibits 2 & 3, find the average variable cost of making a video game produced by Sony and Microsoft.arrow_forward
- Suppose that new uses are discovered for corn. Assume that nothing else haschanged. What do you expect to happen to the price of soybeans. Explain with a supply and demand diagram for soybeans. For a bonus point, what is the real-world basis for this question?arrow_forwardThe publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost: Total fixed cost $ 100,000 Average Variable Cost $ 20 Selling Price $ 30 d) Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned. e) Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.arrow_forwardTitan manufactures and sells gas-powered electricity generators. It can purchase a new line of fuel injectors from either of two companies. Cost and savings estimates are available, but the savings estimate is unreliable at this time. Use an AW analysis at 10% per year to determine if the selection between company A and company B changes when the savings per year may vary as much as 40% from the best estimates made thus far.arrow_forward
- Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, while the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. Decision Low Medium High Basic Model $75,000 $95,000 $120,000 Advanced Model $60,000 $150,000 $260,000 Given the uncertainty associated with the demand volume and no other information to work with, how would you make a decision? Use the Excel template Decision Analysis and explain your reasoning.arrow_forwardA transportation project has a present cost of $2.0 per consumer. It is being replaced by a project with the consumer cost reduced to $1.0. Further, there will be a 30% increase in the number of consumers with the new system. The annualized agency cost for investment is 30% of the present consumer cost. Maintenance for each is the same. What is the benefit-to-cost ratio?arrow_forwardDoctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,