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Assignment 5 (Capacity Planning) The Problem: A manufacturing facility is considering three capacity alternatives: for its new line of products, namely A,B, and C. Alternative A would have a weekly fixed cost of $110,000 and variable costs of \$24 per unit. Alternative B would have a weekly fixed costs of $120,000 and variable costs of $20 per client. Alternative C would have a weekly fixed costs of $90,000 and variable costs of $30 per unit. Revenue is expected to be $40 per unit for the three alternatives. (1) Which alternative is the best economically? (2) Which alternative will produce the highest profits for an annual output of 50,000 unit? (3) Which alternative would require the lowest number of units to generate an annual profit of $50,000 ? Why? - Comment on the results obtained in each case Submission: Write a report that should not be less than 3 pages (use figures and graphs whenever necessary). a) Send your report via Moodle Platform b) Always list down the references you've used at the end of your memo report, if any. c) Work alone. This is not a group assignment. d) Always use the assignment form provided in the course web site to submit your feedback. Efficiency Breakeven 1 Breakeven 2 Efficiency. Efficiency Breakeven 1 Breakeven 2 Comparative Breakeven Analysis \begin{tabular}{|l|r|r|l|l|l|l|l|l|} \hline Process & & 1 & 2 & 3 & 4 & 5 & 6 \\ \hline Total revenue & & TR = & 0 & 0 & 0 & & \\ \hline Fixed Cost & & FC= & 0 & 0 & 0 & & \\ \hline Total variable & cost & TVC = & 0 & 0 & 0 & & \\ \hline Total cost & & TC= & 0 & 0 & 0 & & \\ \hline Profit & & P= & 0 & 0 & 0 & & \\ \hline \end{tabular} Assignment 5 (Capacity Planning) The Problem: A manufacturing facility is considering three capacity alternatives: for its new line of products, namely A,B, and C. Alternative A would have a weekly fixed cost of $110,000 and variable costs of \$24 per unit. Alternative B would have a weekly fixed costs of $120,000 and variable costs of $20 per client. Alternative C would have a weekly fixed costs of $90,000 and variable costs of $30 per unit. Revenue is expected to be $40 per unit for the three alternatives. (1) Which alternative is the best economically? (2) Which alternative will produce the highest profits for an annual output of 50,000 unit? (3) Which alternative would require the lowest number of units to generate an annual profit of $50,000 ? Why? - Comment on the results obtained in each case Submission: Write a report that should not be less than 3 pages (use figures and graphs whenever necessary). a) Send your report via Moodle Platform b) Always list down the references you've used at the end of your memo report, if any. c) Work alone. This is not a group assignment. d) Always use the assignment form provided in the course web site to submit your feedback. Efficiency Breakeven 1 Breakeven 2 Efficiency. Efficiency Breakeven 1 Breakeven 2 Comparative Breakeven Analysis \begin{tabular}{|l|r|r|l|l|l|l|l|l|} \hline Process & & 1 & 2 & 3 & 4 & 5 & 6 \\ \hline Total revenue & & TR = & 0 & 0 & 0 & & \\ \hline Fixed Cost & & FC= & 0 & 0 & 0 & & \\ \hline Total variable & cost & TVC = & 0 & 0 & 0 & & \\ \hline Total cost & & TC= & 0 & 0 & 0 & & \\ \hline Profit & & P= & 0 & 0 & 0 & & \\ \hline \end{tabular}