Question

Question 20 (2 points) A manufacturing firm is trying to choose between two processes to make widgets. Process A is expected to have fixed.costs of $100,000/vear, and variable costs of $17/widget. Process B is expected to have fixed, costs of $600,000/year, but variable costs of $7/widget. What volume represents the crossover point at which it becomes more economical to use Process B? 7 100,000 widgets/year $100,000/year 11 50,000 widgets/year $600,000/year Page 5 of 7 15 Previous Page Next Page s

Answer 1

The answer to question 20: Crossover point=C-FCA vCA-vCB FCR Fixed Cost of ProcessB -FCA Fixed Cost of Process A HereCVariable Cost of Process A -VCB Variable Cost of Pro cess B 600000-100000 Therefore, Crossover point=' 17-7 500000 10 50,000 Widgets/year The Answer to Q 16: Time Function mapping can be used. Explanation: Time function maps show the time frame and flows. Using thos Time function mapping Target eliminate the processes that are identify bottlenecks, delays and repletion. So the team can not adding value can Service blueprinting: Service blueprint will analyze the relationships between different service components and shows service delivery from customer So it will not be useful perspective Design for manufacturing and design for assembly are related to manufacturing process, while Target in service industry and want to serve customer promptly. So these options are not related in this perspective

There is a problem in copy paste.