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Business 3401 Assignment #2 Page 1 OPERATIONS MANAGEMENT B3401 ASSIGNMENT # 2 (Total 100 points) Due Friday July 3, 2015 Question 1. (Total 30 points) William owns a company who specializes in customized golf balls for promotional purposes. He has to decide whether to have one or two production lines. One line will have a monthly fixed cost of $4000 and two lines will have a monthly fixed cost of $7000. Each line is able to produce 25 customized balls an hour; the production lines operate 200 hours a month. Variable costs are $75 per 100 balls and 100 customized balls sell for $225. Assume sales occur in batches of 100. a)Calculate the breakeven for one machine and two machines b)William projects that monthly demand will be between 4800 and 5400. Do you recommend one or two production lines? Question 2.(Total 50 points)Karen runs a local chocolate company that produces and sells specialty chocolate. The chocolates are sold in her store and she has three employees working at a time.