Stan Fawcetts company is considering producing a .• 7.5 gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3.000 units. Stan estimates that it will cost $15,000 to set up the process and then $1.82 per unit for labor and materials. a) Draw a graph illustrating the crossover (or indifference) point. b) Determine the number of units where either choice has the same cost PX

Stan Fawcetts company is considering producing a .• 7.5 gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3.000 units. Stan estimates that it will cost $15,000 to set up the process and then $1.82 per unit for labor and materials. a) Draw a graph illustrating the crossover (or indifference) point. b) Determine the number of units where either choice has the same cost PX

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Stan Fawcett's company is considering producing agear assembly that it now purchases from Salt Lake Supply, Inc.Salt Lake Supply charges $4 per unit, with a minimum order of3,000 units. Stan estima tes tha t it will cost $15,000 to set up theprocess and then $1.82 per unit for labor and materials.a) Draw a graph illustrating the crossover (or indi fference) point.b) Determine the number of units where either choice has the same cost.
Given the following data, calculate a) BEPx; b) BEPs; and c) the profit at I 00,000 units:P = $8/ unit V = $4/ unit F = $50,000
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Q2: What factors should be taken into account in deciding whether to use a job order cost system or a process cost system in any given manufacturing situation?
A laboratory that performs the industrial ope Industrial Processes Television Mobile Time Manufacturing Assembly Packaging Profit 10 6 2 10 8 10 3 6 At most 2000 At most 1600 At most 200 Required: Find the maximum value for profits and the number of materials produced from televisions and mobiles, using graphical method.