Question: When Dr. Drew was a manager at General Motors Corp., GM had a wholly-owned subsidiary named Delphi Corporation. Delphi produced stereos, radios, and speakers, as

When Dr. Drew was a manager at General Motors
When Dr. Drew was a manager at General Motors Corp., GM had a wholly-owned subsidiary named Delphi Corporation. Delphi produced stereos, radios, and speakers, as well as other electronic components for both GM vehicles and other automobile manufacturers on a contract basis. Delphi made these components for GM under the brand name AC Delco. At one point Deiphi had come out with a new product named On-Star, which was a communication system which allowed the driver to communicate with Delphi directly to unlock their vehicle, notify authorities of a break-down, or notity emergency services in the event of a crash, amongst other services such as giving driving directions and recommendations to travelers. Audi Motorsports has just requested a production run of 3750 . GM sells the systems to Audi for $250 per. Delphi has three production facilties, each with its own Fixed Cost and Variable Costs curves associated with it: Question 1. For a given output, Z=3750, where should Delphi produce? That is, Caiculate a cross-over of Alron to Bowing Green and one for Bowling Green to Chicago. Show your work including the graph. [6] Question 2. What is the Proft for that partioular production run? {4.5} What are the revenues at the Cross-Over points? (2

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