BUSI 411 Operations Management Ch 5

11t122014 Assignmeflt Print Vie$v

a. Determine each altemative's breakeven point in units. (Round your answer to the nearest whole amount.)

Qrp,n Qerp,e

units

units

b. At what volume of output would the two alternatives yield the same profit? (Round your answer to the nearest whole amount)

Profit units

c. lf expected annual demand is 15,0@ units, which altemative would yield the higher profit?

Higher profit 1C[cf to setect) v

Worksheet

Problem 5-4

Difficulty:1 Easy

Leaming Objective: 05-08 Briefl y describe approaches {hat are useful for evaluating capacity altematives.

award:

3. 3.60 points

Problem 5-9 A company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 229 units per day. Annual demand is cunently 70,000 units. lt is forecasted that within two years, annual demand will triple. How many cells should the company plan to acquire to satisfy predicted demand under these conditions? Assume 243 workdays per year.

Cells

Worksheet Difficulty: 1 Easy Learn i ng Objective: 05-03

Problem 5-O Describe ways of defining and measuring capacity.

A 3.60 ooints -.

T..:' lezto.m lpdrcation.com/hm.tpx u4