Question: Problem 5-9 A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacity

Problem 5-9 A company manufactures a product
Problem 5-9 A company manufactures a product
Problem 5-9 A company manufactures a product
Problem 5-9 A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 224 units per day. Annual demand is currently 60,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to acquire to satisfy predicted demand under these conditions? Assume that no cells currently exist. Assume 242 workdays per year. (Round up your answer to the next whole number.). Cells Problem 5-4 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 $38,000 for A and $31,000 for B; variable costs per unit would be $7 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.) BEPA CEP, units units b. At what volume of output would the two alternatives yield the same profit (or loss)? (Round your answer to the nearest whole amount.) Profit units c. If expected annual demand is 10,000 units, which alternative would yield the higher profit (or the lower loss)? Higher profit. (Click to select) Problem 5-5 A producer of felt-tip pens has received a forecast of demand of 47,000 pens for the coming month from its marketing department Fored costs of $29,000 per month are allocated to the felt-tip operation, and variable costs are 28 cents per pen. a. Find the break-even quantity if pens sell for $4 each (Round your answer to the next whole number.) QEP units b. At what price must pens be sold to obtain a monthly profit of $17.000, assuming that estimated demand materializes? (Round your answer to 2 decimal places. Omit the "S" sign in your response.) Price $

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!