Question: Please help, will rate right after !! A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two

Please help, will rate right after !! Please help, will rate right after !! A small
Please help, will rate right after !! A small
Please help, will rate right after !! A small
Please help, will rate right after !! A small
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B. have been identified, and the associated costs and revenues have been estimated Annual fixed costs would be 544,000 for A and $20,000 for B; variable costs per unit would be $10 for A and $11 for B, and revenue per unit would be $19. a. Determine each alternative's break-even point in units. (Round your answer to the nearest whole amount.) QBEPA 4889 units 2.500 units b. At what volume of output would the two alternatives yield the same profit for loss)? (Round your answ amount.) to the nearest whole units c. If expected annual demand is 18.000 units, which alternative would yield the higher profit for the lower loss)? Higher profit A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs will be $15 per customer and revenue will be 545 per customer a. Determine the break-even point for each range (Round your answers to the next whole number:) One machine Two machines b. If estimated demand is 90 to 120 customers per day, how many machines should be purchased? A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost $70,000 $60,000 $50,000 C Product forecasts and processing times on the machines are as follows PROCESSING TIME PER UNIT (minutes) Product Demand Annual 6 4 6 1 4 5 5 23.000 22.000 17.000 19.000 1 5 Click here for the Excel Data Eile a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 220 days a year. (Enter total processing times as whole numbers, Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.) Total processing ime in minutes per machine B Number of machine needed and B time in minutes per machine A B Number of each machine needed and total purchasing cost A B Buy b. Consider this additional information. The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $11 cach, B machines have an hourly operating cost of $13 each, and machines have an hourly operating cost of $12 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisty demand (Ute rounded machine quantities from Parto. Do not round any other intermediate calculations, Round your final answers to the nearest whole number) Total cost for each machine B Buy

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!