Question: Question 4: Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed cost of the machine is $900,000, and its variable cost

Question 4: Fabricators, Inc. wants to increase
Question 4: Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed cost of the machine is $900,000, and its variable cost is $150 per unit. The revenue is $310 per unit . What is the break-even point for machine? If the revenue per unit increases by 10% and the cost per unit decreases by 20% then how would that change the breakeven point? Question 5: In a retail shop, the annual demand for a product is 100000 units. The ordering cost per order (irrespective of the order size) is $10 per order. The handling (carrying) cost for a unit is $2.4 per unit per year. If the assumptions of Economic Order Quantity inventory model are valid, then answer the following problems: What would be the EOQ? 2. If the business orders EOQ for each order, then how many orders the shop would place in a year? Assume that the business operates 300 days a year. 3. If the lead time is 10 days then what would be the Reorder Point (OP)

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