Question: Problem 1 : Emma's Precision Tooling has a contract for 1 2 0 , 0 0 0 units of a specialized component. Emma Thompson, the

Problem 1:
Emma's Precision Tooling has a contract for 120,000 units of a specialized component. Emma Thompson, the owner, has evaluated three different production process alternatives. The fixed costs for each process are as follows: for Standard Machinery (SM), $250,000; for Automated Cell System (ACS), $500,000; and for Full Robotic System (FRS), $900,000. The variable costs per unit are: SM, $14; ACS, $11; and FRS, $7.
a. Calculate the total cost for each process alternative if the production is set at 120,000 units. Which process should Emma choose?
b. Find the crossover points for these processes. Determine the range of units you would make using each process
c. Determine which process should be selected if the production volume is 220,000 units.
Problem 2:
Oliver Grant's company is considering manufacturing a specialized bracket that they currently purchase from Turner Manufacturing Co. Turner charges $5.25 per unit with a minimum order quantity of 6,000 units. Oliver estimates that setting up his production line would cost $21,000, and the variable cost per unit would be $2.50 for labor and materials. Calculate the number of units at which both options would have the same total cost.
 Problem 1: Emma's Precision Tooling has a contract for 120,000 units

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