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Management Studies

SevenJAC is an OEM vendor that provides specialized capabilities to companies of various sizes and industries. Last week, PRCycle, a company that produces specialized motorcycles, ask the company is they could assemble 20 engines for a special edition motorcycle. SevenJAC prior experience in assembling similar motors showed that the first engine takes 60 hours to assemble, and the second engine, 53 hours. Also, the company estimated that assembling this type of engine would cost $300/hour. If the maximum amount PRCycle is willing to pay for assembling all 20 engines is $250,000, show and explain if this is would be a feasible deal.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93091573

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