Question

In: Operations Management

Answer all three of the following Roman Numeral Questions (I, II, III). Equal credit. I. Suppose...

Answer all three of the following Roman Numeral Questions (I, II, III). Equal credit.

I. Suppose a company has a design maximum output of 200. Its actual output is 150 and its efficiency is 75%. Calculate its effective output and its capacity utilization.

II. Suppose a company has a fixed cost of $200,000 and a variable cost per unit of $14. It sells its product for $19.

a. Calculate its break-even level of output.

b. Calculate how much it must produce to make $100,000, assuming it can sell it all. Extra credit – 15 points. If it can outsource, and buy the product wholesale from a distributor at $16 each, over what level of output should it buy from the wholesaler, and over what level should it produce on its own?

III. If a company knows that its new employees have a seventy-five percent learning rate, and the first time they perform the task it takes 200 hours.

a. How long will it take to perform the eighth repetition?

b. How long will it take to perform the first eigth repetitions, cumulative?

Solutions

Expert Solution

1. Design maximum output= 200

Actual Output=150

Efficiency=75%

Actual Output = Effective Output * Efficiency

Effective Output= Actual Output / Efficiency = 150/0.75 = 200

Capacity Utilization = (Actual Output/Potential Output)*100

= (150/200)*100=75%

2. Fixed cost = $200,000

Variable cost/ unit = $14 per unit

Sales price = $19 per unit

Contribution margin = Sales price – Variable cost = 19-14 = $5

Break even point = Fixed cost / Contribution margin

= 200000/5 = 40000 units

To make profit = $100,000, let the products sold be x

19x – (200,000 + 14x) = 100,000

5x -200,000= 100,000

5x = 300,000

x= 300,000/5 = 60,000 units

3. Learning rate = 75%

b= log learning rate / log 2 = log 0.75 / log 2 = -0.415

t₁= 200 hrs

a. t₈= t₁ * n^b = 200 * (8)^(-0.415) = 84.381 hrs

Unit	Unit Time	Cumulative Time
t1	200	200
t2	150	350
t3	126.77	476.77
t4	112.5	589.27
t5	102.55	691.82
t6	95.08	786.9
t7	89.189	876.089
t8	84.38	960.469

Cumulative time for the first eight repetitions = 960.469 hours

keosha answered 8 months ago

Next > < Previous

Related Solutions

1.13. Problem. (Section 3.4) Three black boxes are labeled with Roman numerals I, II and III....

1.13. Problem. (Section 3.4) Three black boxes are labeled with Roman numerals I, II and III. • Box I contains four red chips and three blue chips. • Box II contains two red chips and five blue chips. • Box III contains seven red chips and no blue chips. Solve each of the following problems. (a) Suppose a box is selected at random and three chips are drawn at random from the box. If all three chips are red, what...

8. Use the following table to answer questions I, ii, iii and iv A B C...

8. Use the following table to answer questions I, ii, iii and iv A B C Initial cost $15,000 $9,000 $12,000 Annual benefit $8,000 $2,000 $1,800 Salvage value $5,000 $9,000 0 Life in years 2 years 3 Years Infinity MARR 10% i. The NPW of alt. A is __________________. A) $13,420 B) $17,380 C) $11,000 D) $6,00 ii. The NPW of alt. B is __________________. A) $13,420 B) $17,380 C) $11,000 D) $6,000 iii. The NPW of alt. C is...

Given the following numbers: (i) 123456; (ii) 546777; (iii) 456734561883. Answer the following questions for each...

Given the following numbers: (i) 123456; (ii) 546777; (iii) 456734561883. Answer the following questions for each of the numbers. (a) Identify the check digit.[1 point] (b) Does the number satisfy the checksum? [9 points] (c) For the numbers that do not satisfy the checksum, change the value of the check digit so that the new number does satisfy the checksum.[2 points]

Ideal gases! For each of the following three scenarios, a-c, answer the following three questions I-III....

Ideal gases! For each of the following three scenarios, a-c, answer the following three questions I-III. (This means there are NINE TOTAL ANSWERS here.) Scenarios a. Two moles of ideal gas are reversibly heated from 250 K to 300 K at a constant volume of 5L. b. A mole of ideal gas is compressed reversibly from 100 L to 10 L at a constant temperature of 273 K. c. One mole of ideal gas is reversibly adiabatically expanded from a...

Answer the three questions below. For questions (i) and (ii) key dates are as follows: Balance...

Answer the three questions below. For questions (i) and (ii) key dates are as follows: Balance date is June 30th. The Audit Report was signed on September 30th. The Financial Statements were issued to shareholders on November 4th. (i) State three audit procedures required under ASA 560 if the auditor discovers that a material event took place on July 23rd. (ii) Is the auditor required to undertake any audit procedures if he/ she was informedby management on October 9th that...

Short Answer 1. Mention three factors that affect the respiratory frequency. i. ii. iii. 2. Mention three...

Short Answer 1. Mention three factors that affect the respiratory frequency. i. ii. iii. 2. Mention three physiological effects on the body that occurs at high temperatures i. ii. iii. 3. Mention three physiological effects on the body that occurs at cold temperatures i. ii. iii.

I need an answer to all three questions, please. Q1: Which of the following was not...

I need an answer to all three questions, please. Q1: Which of the following was not a policy response to the Economic crisis associated with the COVID-19 Crisis? Select one: a. The Fed lowered the policy rate by roughly 1.5 percentage points to nearly zero. b. The U.S. Congress passed a roughly $3 Trillion economic stimulus package. c. The Commonwealth of Massachusetts relaxed the balanced budget rule in the State Constitution. d. The Fed introduced facilities to keep markets liquid...

Answer the following two questions for each of the following examples: (i) smoking by individuals; (ii)...

Answer the following two questions for each of the following examples: (i) smoking by individuals; (ii) toxic waste production by firms; (iii) research and development by a high-tech firm; and (iv) individual vaccination against communicable illness. a. is there an externality? If so, describe it, including references to whether it is positive or negative and whether it is a consumption or production externality. b. If there is an externality, does it seem likely that private markets will arise that allow...

Explain the termination of Polymerase I, II, and III.

2014 I 31 2017 I 69 II 24 II 54 III 23 III 46 IV 16...

2014 I 31 2017 I 69 II 24 II 54 III 23 III 46 IV 16 IV 32 2015 I 42 2018 I 82 II 35 II 66 III 30 III 51 IV 23 IV 38 2016 I 53 2019 I 91 II 45 II 72 III 39 III 59 IV 27 IV 41 Create a multiple regression equation incorporating both a trend (t=0 in 2013: IV) and dummy variables for the quarters. Let the first quarter represent the reference...

Subjects