Question: answer 7.1, 7.2 and 7.3 on the excel sheet 7.1 Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings
answer 7.1, 7.2 and 7.3 on the excel sheet
7.1 Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: GENERAL-PURPOSE FLEXIBLE MANUFACTURING SYSTEM DEDICATED MACHINE EQUIPMENT (GPE) (FMS) (DM) Annual contracted units 200,000 200,000 200,000 Annual fixed cost $100,000 $200,000 $500,000 $15.00 $ 14,00 $ 13.00 Per unit variable COST Which process is best for this contract? PX 7.2 Using the data in Problem 7.10. determine the most economical volume for each process. PX 7.3 Using the data in Problem 7.10, determine the best process for each of the following volumes: (1) 75,000, (2) 275,000, and (3) 375,000, 5.U. Cho7ex4 Draw Page Layout Formulas Data Review View Home Insert X Cut Copy Paste Format Calibri (Body) 10 A- A- Wrap Text General B I U A Merge & Center $ % 89 Condi Form A30 xfx A B C D E F G H M Nm Cost volume analysis 1200000 1000000 1 CHAPTER 7: Example 4 2 3. Cost-volume analysis 4 Enter the food and variable costs for the options in 5 the data area. You my enter a volume which to 5 perform a womalysis 7 3 Data 9 B 10 Fecot 200000 11 Vantable cost 10 12 13 Volume (optional 800000 600000 300000 25 40000 10 400000 200000 0 0 2000 6000 Dollars 2857142857 371428.5714 4000 460000 6666666667 6666666667 6000 8000 Units 10000 12000 14000 ---- A 200000 400000 100000 15 Results 16 Breaker points 17 AVB 18 Avsc 19 C 20 21 Volume analysis units 22 Total Cost 23 24 25 Graph 26 Un 27 0 28 1313333333 29 30 31 32 23 200000 1000000 30000 63333333 400000 5333333333

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