Use the same data in Problem S7.28: a) If the expected volume is 28,500 units, which alternative
Question:
Use the same data in Problem S7.28:
a) If the expected volume is 28,500 units, which alternative should be chosen?
b) If the expected volume is 15,000 units, which alternative should be chosen?
Data from problem 28
Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, $170,000. The variable cost for X is $120.00, and for Y, $100.00. The revenue generated by each unit is $200.00.
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Related Book For
Operations Management Sustainability And Supply Chain Management
ISBN: 9780137476442
14th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson
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