Background infoscheduled production per 8 hour shift 24000, Ask an Expert

Management Studies

Background Info:

Scheduled production per 8 hour shift = 24,000 units

Labor cost per 8 hour shift = $1,800

Benefits per 8 hour shift = 38.5% of labor cost

Annual production forecast = 6,240,000 units

We are looking to purchase a piece of equipment that our Engineering Department has recommended. Engineering estimates the proposed equipment will reduce combined labor and benefit expenses by 8.5%. The additional annual operating cost for the proposed equipment, including depreciation, energy consumption, and maintenance is estimated to be $55,000.

1. Using the background information and assumptions above, calculate the difference in the operating cost per year between the existing equipment and the proposed.

2. What decision would you make regarding this piece of equipment and why?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91643938

Have any Question?Write your Review or question?

Related Questions in Operation Management

Discuss the management objectives of a firm governed by the

Discuss the management objectives of a firm governed by the shareholder wealth maximization. For example, in the United States, the decision to shift production from a local factory to a foreign one may be based on the c ...

Choose one of the following three discussion topics your

Choose ONE of the following three discussion topics. Your paper should be 250-300 words and APA formatted. 1. Analyze the concept of "best practices" and how its implementation impacts competitive advantage. 2. Analyze t ...

1 which of the following do employees list as their top

1. Which of the following do employees list as their top complaint, related to communication, in the workplace? 2. How rare are diamonds really? How did De Beers popularize them for engagement rings? How has the diamond ...

Most organizations many clubs and even the federal

Most organizations, many clubs, and even the federal government of the United States have codes of ethics that describe the acceptable actions of their employees and members. There are also laws in place that provide bou ...

1 is there any inventory control system you would like to

1. Is there any inventory control system you would like to recommend except for the ones discussed in class? Discuss in detail the pros and cons of the recommended system. 2. Write a presentation on the topic EMPLOYEES S ...

Search for a company whose leader used theory e to drive

Search for a company whose leader used Theory E to drive the changes and another company whose leader used Theory O to drive the changes. Compare and contrast the two companies, including profitability. Which of the two ...

Apple assignemnt1 what approach has the firm taken towards

Apple Assignemnt: 1. What approach has the firm taken towards international growth- localization, global standardization 2. Describe the nature of these challenges for the company 3. What mode of expansion has it used? 4 ...

Timothy and winston are shareholders and directors of

Timothy and Winston are shareholders and directors of English Tutorial Limited, which offers tutorials to students. Timothy holds 40% of the shares and Winston holds 60%. Nancy and Mabel are teachers employed by English ...

1 describe some of the trends with process technology2

1. Describe some of the trends with process technology. 2. Discuss the purpose of each of the following financial statements: income statement, balance sheet, statement of cash flow and statement of owner’s equity. Ident ...

1 explain how you have used data visualization or

1. Explain how you have used data visualization or informatics this week. Share the value of “Chunking” and Informatics in the struggle to make meaning out of a great deal of information. 2. Define Understanding Key Depa ...

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