An Organization Is Considering Three Process Configuration Options

question 91

Essay

An organization is considering three process configuration options. There are two different intermittent processes, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,000 per month and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 per month and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 per month and variable costs of $1 per unit.
(a) If the company produced 20,000 units, what would be its cost under each of the three choices?
(b) Which process offers the lowest cost to produce 40,000 units? What is that cost?

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Definitions:

Cerebral Asymmetry

The uneven distribution and specialization of functions in the two hemispheres of the brain.

Right- and Left-hemisphere

Refers to the two halves of the human brain, each responsible for different functions; the left hemisphere is often associated with logical reasoning and language, while the right hemisphere is associated with creative and intuitive processes.

Marxist-Feminist Theorists

Scholars combining Marx's economic theories with feminist perspectives to analyze the roles of capitalism in perpetuating gender inequalities.

Exploitation

Taking unfair advantage of others, often through the unequal distribution of power or resources, for personal or economic gain.