Mindless toys is considering replacing both production lines with one production line. There are three options...
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Mindless toys is considering replacing both production lines with one production line. There are three options listed below: Option Manual Machine Variable Cost per Unit Fully Automated 0.45 Semi-Automatic Machine 0.35 0.25 Capital Cost Installation 50,000 200,000 500,000 The Manual Machine option is best at volumes less than Question 2 The Semi-Automatic Option is best above the Manual Option max and less than Question 3 The Fully Automatic Option is best above volumes of 1 pts 1 pts Given that sales volumes are forecast to stay steady at 2,000,000 units, the best option is O Manual Production Line Semi-automatic Production Line Fully Automatic Production Line Mindless toys is considering replacing both production lines with one production line. There are three options listed below: Option Manual Machine Variable Cost per Unit Fully Automated 0.45 Semi-Automatic Machine 0.35 0.25 Capital Cost Installation 50,000 200,000 500,000 The Manual Machine option is best at volumes less than Question 2 The Semi-Automatic Option is best above the Manual Option max and less than Question 3 The Fully Automatic Option is best above volumes of 1 pts 1 pts Given that sales volumes are forecast to stay steady at 2,000,000 units, the best option is O Manual Production Line Semi-automatic Production Line Fully Automatic Production Line
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ANS 1 To determine at what volume the Manual Machine option is best we need to compare the total costs of each option The Manual Machine has a variable cost per unit of 045 and a capital cost installa... View the full answer
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