$7.17 Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00. 1. What is the break-even point in units for proposal A? 2. What is the break-even point in units for proposal B?
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- ••• 1.9 Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery’s ovens to make them more energy-efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with: the data as per below-attached image1. Develop a level production plan for Covolo Diving Gear. What are the advantages and disadvantages of this plan? Could Covolo implement a pure chase plan, given the current capacity? Why? If sales continue to grow, what are the implications for production capacity at Covolo?Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
- Enabled: Chapter 5 What-If Analysis for Linear... Saved Help Save & Exit Submit Based on the following sensitivity report, how much should the firm be willing to pay for 76 more units of Resource_C? Variable Cells Final Objective Allowable Allowable Cell Name Value Reduced Cost Coefficient Increase Decrease $B$2 Product_1 -2 1E+30 $B$3 Product_2 175 1E+30 $B$4 Product_3 -1.5 1.5 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H.Side Increase Decrease $H$9 Resource A 100 1E+30 20 220 $H$10 $H$11 Resource B 525 800 1E+30 Resource_C 700 2.00 700 180 77 (Round your answer to 2 decimal places.) Units of Resource_C 57pplease provide explaination as to why the other options are incorrect. thank you5) How does revenue management impact an aggregate plan?
- • S7.25 Zan Azlett and Angela Zesiger have joined forcesto start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processingexperience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates oflettuce and then sorting, washing, slicing, preserving, and finallypackaging the prepared lettuce. Together, with help from vendors,they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think alargely manual process will have monthly fixed costs of $37,500and variable costs of $1.75 per bag. A more mechanized processwill have fixed costs of $75,000 per month with variable costs of$1.25 per 5-pound bag. They expect to sell the shredded lettucefor $2.50 per 5-pound bag.a) What is the break-even quantity for the manual process?b) What is the revenue at the break-even quantity for the manualprocess?c) What is the…APP Trial and Error Given the following information: Quarter Demand 2 9,000 3 10,200 4 3,300 Regular Prod. Capacity = 7,225 units/qtr Regular Prod. Cost = $12/unit Overtime Prod. Capacity = 2,000 units/qtr Overtime Prod. Cost = $17/unit Subcontracting Capacity = 10,000 units/qtr Subcontracting Cost = $22/unit Inventory Cost = $5/unit/qtr Beginning Inventory = 0 units Backordering Cost = $12/unit/qtr Beginning workforce = 50 workers Hiring Cost = $2000/worker Production rate/worker = 200 units/qtr Firing Cost = $5000/worker Develop a Production Plan using Level Production with Overtime and Subcontracting Strategies. A) How many units will be…Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding new equip-ment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variablecost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
- 3. Your independent oil and gas company is considering the purchase at time zero of a 100 % working interest in a property. If you elect to develop the lease for an 87.5% revenue interest, the following costs will be incurred: in time zero, the lease bonus cost is $100,00o, intangible drilling costs are estimated at $550,000 while tangible completion costs are estimated at $300,000. Operating costs are estimated to remain constant at $8.00 per barrel (includes production costs, severance taxes and ad-valorem taxes) in each of years 1, 2, 3 and 4. Oil prices are forecasted to be $50.00 per barrel in each of years 1, 2, 3, and 4. Production is summarized in the following table. The escalated dollar minimum rate of return is 12.0%. Use net present value analysis to determine if the acquisition and development of this lease is economically viable: (a) Before considering income taxes, (b) Assuming income tax rate of 30%. (Expense 100% of intangible drilling costs at the end of first year,…10 Collaboration and demand flow strategy are important components of SCM strategy. Select one: a. False b. TrueQ4. What are the important long-term issues relevant for managing capacity, revenue, and customer satisfaction for SWA? Explain comprehensively.