{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Copy of HW%20Solutions%20Process%20&amp;%20Breakeven(1)

Copy of HW%20Solutions%20Process%20&amp;%20Breakeven(1)...

This preview shows pages 1–3. Sign up to view the full content.

Chapter 7 and S7 Homework Solutions Problems 7.5, and 7.7 GPE FMS DM Annual Fixed Cost (\$) \$100,000 \$200,000 \$500,000 Variable Cost/Unit (\$) \$15 \$14 \$13 Total Cost @ 300,000 \$4,600,000.00 \$4,400,000.00 \$4,400,000.00 7.5 Total Cost/Unit @ 300,000 \$15.33 \$14.67 \$14.67 Total Cost @ 75,000 \$1,225,000.00 \$1,250,000.00 \$1,475,000.00 7.7 Total Cost/Unit @ 75,000 \$16.33 \$16.67 \$19.67 Total Cost @ 275,000 \$4,225,000.00 \$4,050,000.00 \$4,075,000.00 7.7 Total Cost/Unit @ 275,000 \$15.36 \$14.73 \$14.82 Total Cost @ 375,000 \$5,725,000.00 \$5,450,000.00 \$5,375,000.00 7.7 Total Cost/Unit @ 375,000 \$15.27 \$14.53 \$14.33 Problem 7.6 GPE Equation: TC = \$100,000 + 15Q FMS Equation TC = \$200,000 + 14Q DM Equation TC = \$500,000 + 13Q Breakeven between GPE & FMS: 100,000 +15Q = 200,000 +14Q Q = 100,000 Breakeven between FMS & DM: 200,000 + 14Q = 500,000 + 13Q Q = 300,000 GPE is best betwwen 0 and 100,000 FMS is best between 100,000 and 300,000 DM is best for more than 300,000 Problem 7.9 Subcontract Cost = 4Q In House Cost = \$15K + \$1.82Q They are equal when: 4Q = \$15K + 1.82Q 2.18Q = \$15,000 Q = \$15,000 / 2.18 = 6880.7339449541

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Problem S7.9 2.5 = lenses produced by one machine (K) Year 1996 15.00 6 SUMMARY OUTPUT 1997 15.50 6 1998
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern