3- At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $500...

   

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3- At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $500 per unit and it takes place in a facility that has a monthly fixed cost of $250,000. a. (1.5 POINT) If Freeze Inc. sells each unit at $1,000, how many units do they need to sell every month to break-even? b. (1.5 POINT) What is the monthly revenue at the break-even point? c. (1.0 POINT) What is the monthly variable cost at the break-even point? d. (1.0 POINT) What is the total operating cost at the break-even point? e. (1.0 POINT) If Freeze Inc. sells 600 units at $1,000 each on a given month, calculate the profit. Problem #4 - The mean number of air conditioning units assembled per month by Freeze, Inc. is 750 and the standard deviation is 100 units. a. (1.0 POINT) If the number of air conditioning units assembled per month follows a normal distribution, calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater than the monthly break-even point calculated in problem 3-a. b. (1.0 POINT) An improved assembling process is proposed to Freeze, Inc. to reduce the variable cost from $500 per unit to $400 per unit., increase the mean number of air conditioning units assembled per month from 750 to 850 and reduce the standard deviation to 90 units. As a result of the improvements, monthly fixed costs would go up from $250,000 to $300,000. Once these improvements are implemented, calculate the new number of air conditioning units that Freeze Inc. must sell every month to break-even, discuss and justify if you would recommend the process improvement initiative. C. (1.0 POINT) If the number of air conditioning units assembled per month still follows a normal distribution after the implementation of the improvements described on item (b), calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater than the new monthly break-even point. Now that you know this probability, would you change your recommendation? Justify. 3- At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $500 per unit and it takes place in a facility that has a monthly fixed cost of $250,000. a. (1.5 POINT) If Freeze Inc. sells each unit at $1,000, how many units do they need to sell every month to break-even? b. (1.5 POINT) What is the monthly revenue at the break-even point? c. (1.0 POINT) What is the monthly variable cost at the break-even point? d. (1.0 POINT) What is the total operating cost at the break-even point? e. (1.0 POINT) If Freeze Inc. sells 600 units at $1,000 each on a given month, calculate the profit. Problem #4 - The mean number of air conditioning units assembled per month by Freeze, Inc. is 750 and the standard deviation is 100 units. a. (1.0 POINT) If the number of air conditioning units assembled per month follows a normal distribution, calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater than the monthly break-even point calculated in problem 3-a. b. (1.0 POINT) An improved assembling process is proposed to Freeze, Inc. to reduce the variable cost from $500 per unit to $400 per unit., increase the mean number of air conditioning units assembled per month from 750 to 850 and reduce the standard deviation to 90 units. As a result of the improvements, monthly fixed costs would go up from $250,000 to $300,000. Once these improvements are implemented, calculate the new number of air conditioning units that Freeze Inc. must sell every month to break-even, discuss and justify if you would recommend the process improvement initiative. C. (1.0 POINT) If the number of air conditioning units assembled per month still follows a normal distribution after the implementation of the improvements described on item (b), calculate the probability of Freeze, Inc. to assemble a quantity of air conditioning units greater than the new monthly break-even point. Now that you know this probability, would you change your recommendation? Justify.

Answer rating: 100% (QA)

3a 15 POINT If Freeze Inc sells each unit at 1000 how many units do they need to sell every month to breakeven Variable cost per unit 500 Selling pric... View the full answer