Business, 06.03.2020 21:21, Raechelrae04
A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities).
Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $275,000 per year, and variable costs would be $550 per boat. Subcontracting would involve a cost per boat of $2,540, and expansion would require an annual fixed cost of $55,000 and a variable cost of $1,060 per boat.
a. Find the range of output for each alternative that would yield the lowest total cost. b. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats?c. What other factors might be considered in choosing between expansion and subcontracting?
Answers: 3
Business, 22.06.2019 17:50, hinokayleen5053
Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.
Answers: 1
Business, 23.06.2019 00:30, jaydanicole22
Industrial engineers who specialize in ergonomics are concerned with designing workspace and devices operated by workers so as to achieve high productivity and comfort. a paper published in this research area reports on a study of preferred height for an experimental keyboard with large forearm-wrist support. a sample of 31 trained typists resulted in an average preferred height of 80.0 cm
Answers: 1
A company that produces pleasure boats has decided to expand one of its lines. Current facilities ar...
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