Jane Persico,facility Engineer at the El Paso Plant of Computer

question 12

Essay

Jane Persico,facility engineer at the El Paso plant of Computer Products Corporation (CPC),is studying a process selection decision at the plant.A new printer is to be manufactured and she must decide whether the printer will be auto-assembled or manually assembled.The decision is complicated by the fact that annual production volume is expected to increase by almost 50% over three years.Jane has developed these estimates for two alternatives for the printer assembly process:
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a.Which production process would be the least-cost alternative in Years 1,2,and 3?
b.​
How much would the variable cost per unit have to be in Year 2 for the auto-assembly process to justify the additional annual fixed cost for the auto-assembly process over the manual assembly process?
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Definitions:

Classical Conditioning

A training process involving the correlation between a stimulus from the environment and one that occurs inherently.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Operant

A term used in the science of behavior to describe an action or behavior that operates on the environment to produce consequences.

Classical

Pertaining to the first significant period or highest standard within any discipline; in psychology, often refers to conditions or experiments that form the basis of behaviorism, such as classical conditioning.