An organization is considering three process configuration options. There are two different intermittent processes, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,500 per month and variable costs of $10 per unit. The larger intermittent process has fixed costs of $4,500 per month and variable costs of $6 per unit. A repetitive focus plant has fixed costs of $6,557 per month and variable costs of $3 per unit.

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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An organization is considering three process configuration options. There are two different intermittent
processes, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,500 per month and
variable costs of $10 per unit. The larger intermittent process has fixed costs of $4,500 per month and variable
costs of $6 per unit. A repetitive focus plant has fixed costs of $6,557 per month and variable costs of $3 per
unit.
Based on comparing the options:
If the company produced 1,700 units, what would be its cost under each of the three choices?
a. Smaller Intermittent =
[Select]
b. Larger Intermittent
c. Repetitive Focus=
[ Select
cost?
[Select]
d. Which process offers the lowest cost to produce 200 units? [Select]
[Select]
What is that
Transcribed Image Text:An organization is considering three process configuration options. There are two different intermittent processes, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,500 per month and variable costs of $10 per unit. The larger intermittent process has fixed costs of $4,500 per month and variable costs of $6 per unit. A repetitive focus plant has fixed costs of $6,557 per month and variable costs of $3 per unit. Based on comparing the options: If the company produced 1,700 units, what would be its cost under each of the three choices? a. Smaller Intermittent = [Select] b. Larger Intermittent c. Repetitive Focus= [ Select cost? [Select] d. Which process offers the lowest cost to produce 200 units? [Select] [Select] What is that
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