35 01 55 43 Qbepa Qbep B A Small Firm Intends To Increase The Capacity Of A Bottleneck Operation By Adding A New Machine 1 (109.87 KiB) Viewed 49 times
35 01 55 43 Qbepa Qbep B A Small Firm Intends To Increase The Capacity Of A Bottleneck Operation By Adding A New Machine 2 (140.09 KiB) Viewed 49 times
35 01:55:43 QBEPA QBEP B A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B variable costs per unit would be $10 for A and $11 for B, and revenue per unit would be $15. a. Determine each alternative's break-even point in units. wser=0&launchUrl=http%253A%252 b. At what volume of output would the two alternatives yield the same profit? units Higher profit units units E c. If expected annual demand is 12,000 units, which alternative would yield the higher profit? < Prev 35 of 36 Next Next
01:55:50 Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1.500 flower pots. &launchUrl=https%253A%252F%252Fbbuhid edu%252Fwebapp252Fpo a. What additional annual cost is the shop incurring by staying with this order size? (Round your intermediate calculations and final answer to 2 decimal places.) Additional annual cost About b. Other than cost savings, what benefit would using the optimal order quantity yield? (Round your answer to the nearest whole percent.) Seved % of the storage space would be needed.
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