Question Details

[solution] »

A firm is about to undertake the manufacture of a product, and it is weighing three capacityalter


Description

Answer Download


The Question

A firm is about to undertake the manufacture of a product, and it is weighing three capacityalternatives: small job shop, large job shop, and repetitive manufacturing. The small jobshop has fixed costs of $3,000 per month, and variable costs of $10 per unit. The larger jobshop has fixed costs of $12,000 per month and variable costs of $3 per unit. The repetitivemanufacturing plant has fixed costs of $30,000 per month and variable costs of $1 per unit.Demand for the product is expected to be 1,000 units per month with "moderate" marketacceptance, but 2,000 under "strong" market acceptance. The probability of moderateacceptance is estimated to be 60 percent; strong acceptance has a probability of 40 percent.The product will sell for $25 per unit regardless of the capacity decision. Which capacitychoice should the firm make?

 


Solution details

Solution #00070298

[solution] »

A firm is about to undertake the manufacture of a product, and it is weighing three capacityalter.zip

Uploaded by: Tutor

Answer rating:

This paper was answered on 14-Oct-2020

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Oct 14, 2020

EXPERT

Tutor

ANSWER RATING

BEST TUTORS

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

STUCK WITH YOUR PAPER?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now