Resource Lumber Finishing hours Carpentry hours Table 8 board ft 4 hrs 3 hrs Cupboard 10 board ft 5 hrs 4 hrs Couch 14 b
Posted: Mon May 30, 2022 6:44 am
- Resource Lumber Finishing Hours Carpentry Hours Table 8 Board Ft 4 Hrs 3 Hrs Cupboard 10 Board Ft 5 Hrs 4 Hrs Couch 14 B 1 (11.43 KiB) Viewed 13 times
expensive toys. Each toy sells for $250 and costs $90. The company
incurs a fixed cost of $7500 per day to lease their machines to
manufacture the toys. Depending on the volume of production the
company must also hire and schedule enough number of employees to
carry out the production. The additional labor costs are $550,
$1200 and $2650 per day, when the production volume is 0 to 35
units, 0 to 70 units, and 0 to 100 units per day, respectively. The
company forecasts the daily expected demand for its toys to be 90
units. a) (9 points) Compute the break-even point for each range of
production volume separately. b) (15 points) Which production
volume range is the best for the company? Explain clearly why. c)
(6 points) Suppose the company has a production capacity of 100
units per day. (Use this information independent of the production
volumes mentioned above). What is the capacity cushion? What is the
resulting production capacity utilization?
Resource Lumber Finishing hours Carpentry hours Table 8 board ft 4 hrs 3 hrs Cupboard 10 board ft 5 hrs 4 hrs Couch 14 board ft 8 hrs 6 hrs