What should the range be if they made it in$-$house? or if they bought the motors from a vendor?

Question $1$:

A company plans production of a new appliance. What should

the range be if they made it in$-$house? or if they bought the

motors from a vendor? The vendor has a cost of $$7.$ In$-$house

the motors can be produced on the production line: fix cost of

$$160,000$ and a variable rate of $$5$

Question $2$:

Need to balance an assembly operation to achieve an output

rate of $240$ units per eight hour day.

Task Duration$($mins$)$ Precedes task

A $\mathrm{.}2-$

B $\mathrm{.}4$ A

C $\mathrm{.}2-$

D $\mathrm{.}4$ B$,$ C

E $1\mathrm{.}2-$

F $1\mathrm{.}2$ E

G $1$ F$,$ D

a$)$ Draw the network

b$)$ Determine the cycle time

c$)$ Determine number of work stations

d$)$ Use heuristic rule to assign workstations

e$)$ Calculate $\%$ idle time

Question $3$:

A small business owner is contemplating the addition of

another product line. Capacity increases and equipment will

result in an increase in annual fixed costs of $$50,000.$ Variable

costs will be $$25$ per unit.

$($i$)$ What unit selling price must the owner obtain to break$-$even

on a volume of $2,500$ units a year?

$($ii$)$ Because of market conditions, the owner feels a revenue of

$$47$ is preferred to the value determined in part a$.$ What

volume of output will be required to achieve a profit of $$16,000$

using this revenue?