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 machinc? 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 S: 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 152.4 per unit per year. If the assumptions of Economic Order Quantity inventory model are valid, then answer the following problems 1. What would be the EOQ? 2 If the business orders EOQ for cach order, then how many onders 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 (ROP)? What are the annual holding cost and the annual ordering cost

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