2. Given the following data, determine the total annual cost of making with each of process...
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2. Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is 8,500 units a year. The operations manager has said that it would be possible to achieve a 12 percent reduction in the fixed cost of Process B and a 12 percent reduction in B's variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achieve those savings was $5,000? Variable cost per unit Annual fixed cost Transportation cost per unit Process A $49 $42000 Make Process B $51 $34000 Process C $50 $2 2. Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is 8,500 units a year. The operations manager has said that it would be possible to achieve a 12 percent reduction in the fixed cost of Process B and a 12 percent reduction in B's variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achieve those savings was $5,000? Variable cost per unit Annual fixed cost Transportation cost per unit Process A $49 $42000 Make Process B $51 $34000 Process C $50 $2
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To determine the total annual cost of making with each process A and B and of buying we need to consider the variable costs fixed costs and transporta... View the full answer
Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
Posted Date:
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