Question: 303-1 online Quantitative Analysis Questiom-1: 4 Marks on A small factory provides different types of products for local companies. Due to technological advancement the manager

303-1 online Quantitative Analysis Questiom-1: 4

303-1 online Quantitative Analysis Questiom-1: 4 Marks on A small factory provides different types of products for local companies. Due to technological advancement the manager is seeking the replacement of their manufacturing equipment. He received proposals from different suppliers. The proposed equipment have a monthly lease cost plus a cost for each product they provide. The first equipment has a monthly lease cost of AED 10,000, and there is a variable cost of AED 80 per unit of product. The second proposed equipment has a monthly lease cost of AED 8,000, and there is a variable cost of AED 100 per unit of product. The selling price is AED 200 per unit of product. As a business analyst compute: a)-the Break-Even Point and the Revenue for each proposed equipment b)-the Volume (number of units) at which the two equipment have the same monthly total cost. c)-the variable cost per unit for first equipment, if the fixed cost for this equipment was reduced to AED 8000, the volume of the products is 100 per month, while selling price per unit was reduced to AEI d) Discuss you overall results and propose your best alternative - B

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