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

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

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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
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Problem S7.9 2.5 = lenses produced by one machine (K) Year 1996 15.00 6 SUMMARY OUTPUT 1997 15.50 6 1998
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