A firm is about to undertake the manufacture of a product, and it is weighing the process configuration options. There are two intermittent processes under consideration, as well as a repetitive focus
The smaller intermittent process has fixed costs of $3,000 per month and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 per month and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 per month and variable costs of $1 per unit.
a. At what output does the large intermittent process become cheaper than the small one?
b. At what output does the repetitive process become cheaper than the larger intermittent process?
(a) at 1125 units, the large job shop becomes cheaper than the small job shop; (b) at 38,000 units, the repetitive shop is cheaper than the larger job shop.
You might also like to view...
Moonburst is a newly-launched brand of energy drinks, one among many other recently introduced competing brands
The advertising agency handling Moonburst's account decides that to promote Moonburst better, it has to zero in on an advertising medium that would offer immunity from the clutter of other brands, flexibility to alter its advertising message, and fit in with the modest advertising budget. Also, the medium has to provide a high repeat exposure of the advertising message to the target audience. The advertising agency would be happy to trade-off audience selectivity and creative possibilities, if the medium satisfies the above criteria. Which of the following would be the best option for Moonburst? A) outdoor media B) radio C) magazines D) television E) Yellow Pages
The president of your small company wants to better understand the basis on which you select your promotion mix. You indicate that the selection of promotion-mix ingredients and the degree to which they are used depend on all of the following except the:
A. organizational promotional resources. B. nature of the target market. C. characteristics of the product. D. personal preferences of the marketers. E. feasibility of various promotion methods.
Uncertainty avoidance describes how a culture deals with hierarchical power relationships.
Answer the following statement true (T) or false (F)
What is the appropriate statistical technique that can be used to analyze such data?
What will be an ideal response?