LSM 428 SOME ANALYTICAL TOOLS ASSIGNMENT Show all workings for all questions in order to obtain credit for the final answer 1. A small company has patented a new device for washing dishes. The annual fixed cost to make the device is $70,000. The variable cost, including raw materials and labor to make the device is $10.00. The company sells the device for $30.00 apiece. a. How many pieces will the company need to sell in order to break even? b. If the company sells 25,000 pieces annually, determine the following: (i) annual total cost (ii) annual total revenue (iii) annual total profit City Machine Inc. can make a part for an equipment at a variable cost of $15 a unit. The annual fixed cost for equipment to make it is $40,000. The company found an outside supplier who will supply the part for $10 a unit if City Machine Inc. will pay the supplier's annual fixed costs of $100,000 per year (see table) 2. ALTERNATIVE Buy Make FIXED COST $100,000 per year S40,000 per year VARIABLE COST $10 per unit $15 per unit Refer to the instruction above to: (a) Compute the total annual cost to buy (b) Compute the total annual cost to make (c) Should City Machine Inc make or buy? 3. The Forsite Company is screening three new product ideas, A, B, and C Resource constraints allow only one idea to be commercialized at the present time. The following evaluations have been made for the three new product ideas across five performance criteria that management feels are most important. The five criteria are weighted as shown in the table. Weight 25 Performance Criteria Demand uncertainty Profitability Operations compatibility Investment requirements Risk Scores Product Ideas A 6 5 8 7 8 6 5 7 4 4. 6 7 3 4 2 30 10 20 15 (a) Compute weighted total score for each of the three new product ideas, A, B, and C (b) Which product idea is most attractive and should be commercialized? (@) Which product idea is least attractive