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:

Robert Sutton

An academic and author known for his work on management techniques, workplace dynamics, and the psychology of business.

Political Decision Making

The process by which government officials, politicians, and leaders make choices that affect a country's policies, laws, and governance.

Organizations

Structured groups of people coming together to achieve common goals, often through a defined hierarchy and rules.

Hedonistic Principle

A philosophical concept suggesting that actions are motivated by the pursuit of pleasure and the avoidance of pain.