Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
Question
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Chapter 8, Problem 28P

(a)

Summary Introduction

Interpretation:

The place where the company WC locates the inventory if the facility will produce the 5000 units annually.

Concept Introduction:

Break-even analysis is nothing but the technique by which an organization recognizes the sales volume when the total cost is similar to the total revenue so the organization becomes neutral and incur no profit and no loss.

(b)

Summary Introduction

Interpretation:

The point of indifference between Hongkong and Singapore are as follows.

Concept Introduction:

Break-even analysis is nothing but the technique by which an organization recognizes the sales volume when the total cost is similar to the total revenue so the organization becomes neutral and incur no profit and no loss.

(c)

Summary Introduction

Interpretation:

The range that the company WC will prefer in the Niagara falls

Concept Introduction:

Break-even analysis is nothing but the technique by which an organization recognizes the sales volume when the total cost is similar to the total revenue so the organization becomes neutral and incur no profit and no loss.

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Students have asked these similar questions
You are trying to decide which of the following three cities in which to locate a new manufacturing facility, and you have gathered the following information about each: City Annual Fixed Cost Variable Cost (per unit) Singapore $30,000 $2 Hong Kong $20,000 $3 Niagara Falls $10,000 $6 If this facility will produce 2,000 units annually, where should you locate it? O A. Singapore O B. Niagara Falls O C. either Singapore or Niagara Falls O D. Hong Kong O E. either Hong Kong or Niagara Falls
You are trying to decide which of the following three cities in which to locate a new manufacturing facility, and you have gathered the following information about each: City Annual Fixed Cost Variable Cost (per unit) Singapore $30,000 $2 Hong Kong $20,000 $3 Niagara Falls $10,000 $6 If this facility will produce 15,000 units annually, where should you locate it? O A. Niagara Falls O B. Singapore C. either Hong Kong or Niagara Falls O D. Hong Kong O E. either Singapore or Niagara Falls
ABC Wants to choose the best location for its new aluminium plant. The manager of productions and operations has three possible locations to choose from. His assistant recommends that he use break-even analysis location technique to help determine which location is best based on costs. Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed
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