How much capacity has been used? d. If the variable cost is increased to $55, what is the percent reduction (or increase) to the profit? What is the break-even point in units now?
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Need Help for Lettter C and D please.!!
PROBLEM #3
A plant operation has fixed costs of $2,000,000 per year,
and its output capacity is 100,000 electrical appliances
per year. The variable cost is $40 per unit, and the
product sells for $90 per unit.
a. What is the break-even point in terms of units?
b. What is the break-even point in terms of dollars?
c. How much capacity has been used?
d. If the variable cost is increased to $55, what is the
percent reduction (or increase) to the profit? What is
the break-even point in units now?
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- What does it mean to take a big-picture approach to capacity planning?Carry out a critical differentiation among the design capacity and effective capacity of capacity planning concept. Please mention examples of each of the kinds. Urgent help!EMV APPLIED TO CAPACITY DECISION Southern Hospital Supplies, a company that makes hospital gowns, is considering capacity expansion.APPROACH: c Southern’s major alternatives are to do nothing, build a small plant, build a medium plant, or build a large plant. The new facility would produce a new type of gown, and currently the po-tential or marketability for this product is unknown. If a large plant is built and a favorable market ex-ists, a profit of $100,000 could be realized. An unfavorable market would yield a $90,000 loss. However, a medium plant would earn a $60,000 profit with a favorable market. A $10,000 loss would result froman unfavorable market. A small plant, on the other hand, would return $40,000 with favorable marketconditions and lose only $5,000 in an unfavorable market. Of course, there is always the option of doingnothing.Recent market research indicates that there is a .4 probability of a favorable market, which meansthat there is also a .6 probability of an…
- What is the significance of using a big-picture approach to capacity planning ?1.if manufacturing capacity can only be utlized in manufacturing the keyboards what should company do, make/buy? if the company could utlize the spare capacity in producing 30,000 modems,with vaiable cost $12 per unit.what should the company do, knowing that it can sell the modems at $22 per unit?Q SJ Bakery has a facility for making cream rolls. Determine the design capacity, utilization and efficiency for this plant, given that Last week the unit produced 148,000 rolls. The effective capacity is 175,000 rolls. The production line operates 7 days per week with three 8 hour shifts per day. The line was designed to make rolls at the rate of 1200 per hour.
- What impact does the product mix have on capacity planning?What is meant by Production Capacity?4.1 Lupane State University’s business program has the facilities and faculty to handle an enrolment of 2000new students per semester. However, in an effort to limit class sizes to a reasonable level under 200 handlean enrolment of 2000 new students per semester (generally). Lupane State University dean placed a ceiling one enrolment of 1500 new students although there wasample demand for business courses last year conflicting schedules allowed only 1450 new students totake business courses. Calculate the utilisation and efficiency off the system. 4.2 Under ideal conditions, a service bay at a Fast Lube can save 6 cars per hour. The effective capacity andefficiency of the Fast Lube service bay are known to be 5.5 and 0.880, respectively. What is the minimumnumber of service bays Fast Lube needs to achieve an anticipated servicing of 200 cars per 8-hour day.4.3 Suggest measures that can be adopted by Lupane State University to improve their efficiency.
- How can a system approach to capacity planning be useful ?Explain and expand these importance of capacity planning. 1. Capacity decisions often involve long-term commitment of resources and the fact that, once they are implemented, those decision may be difficult or impossible to modify without incurring major costs. 2. Capacity decisions can affect competitiveness. 3. Capacity affects the ease of management.Explain why is it important to adopt a big picture approach to capacity planning ?