A product is currently made in a process-focused shop where, Ask an Expert

Management Studies

A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit.

The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand).

The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold.

What is the profit (or loss) of the current process?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92760522

Have any Question?Write your Review or question?

Related Questions in Operation Management

Some managers believe that following the law is all that is

Some managers believe that following the law is all that is required to keep their organizations doing things the right way. Others believe that doing the right things must be accompanied by doing things the right way. W ...

Mr smith owns a chocolate candy company the manufacture the

Mr smith owns a chocolate candy company the manufacture the choconut big bar which he sells for$2. The chocolate bar measures 6 inches long by 3 inches wide and ½ inches thick.it is sold with the bar wrapped in foil plac ...

Demand for walnut fudge ice cream at the sweet cream dairy

Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 120 gallons per week and a standard deviation of 17.0 gallons per week. The new manager desires a ser ...

1 if a 20 reduction in a projectrsquos forecast sales would

1. If a 20% reduction in a project’s forecast sales would still result in a positive NPV, then sensitivity analysis would suggest: a. that there is little point in further market research. b. that a more detailed sales f ...

This case study illustrates the management of external

This case study illustrates the management of external suppliers at an OEM and associated risks. The case is unique in that it takes place in the bowels of a global supply chain and is presented from the point of view of ...

Government allegation and prosecution of white collar crime

Government allegation and prosecution of white collar crime is a major risk for corporations and management. Complying with all laws and regulations has never been more important. For this discussion post, you will read ...

1 minimize z x12x2 subject to -x1x2 15 2x1x2 90 x2 30

1. Minimize Z = X1+2X2 Subject to -X1+X2 ? 15 2X1+X2 ? 90 X2 ? 30 And X1 ? 0, X2 ? 0 a.) Solve this graphically b.) Develop a table giving each of the CPF solutions and the corresponding defining equations, BF solutions, ...

Entrepreneurship in actionfacebook interview

Entrepreneurship in Action Facebook Interview Process Facebook has developed a rigorous application process for prospective employees that ensures that the company gets top talent and finds people who fit the Facebook cu ...

Us department of labor office of disability employment

U.S. Department of Labor, Office of Disability Employment Policy. (2017). Building an inclusive workforce: A four-step reference guide to recruiting, hiring and retaining employees with disabilities. Your First Post: Dis ...

Assignmentpurpose imagine that you work for a company that

Assignment Purpose Imagine that you work for a company that tests and rates consumer products, and you are asked to create a report using presentation slides (such as PowerPoint) about the best sporty cars/roadsters for ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert