Two Manufacturing Processes Are Being Considered for Making a New

question 14

Essay

Two manufacturing processes are being considered for making a new product.Process #1 is less capital intensive,with fixed costs of $50,000 per year and variable costs of $700 per unit.Process #2 has fixed costs of $400,000 annually,with variable costs of $200 per unit.
a.What is the break-even quantity for the two processes?
b.If annual sales are expected to be 600 units,which process should be selected?
c.If lowest overall costs per year is your overall objective,for what range of annual production quantities should you select the first process? the second process?
d.Operations and Engineering have found a way to reduce the cost of the second process,such that the fixed costs for this process decrease from $400,000 to $300,000 annually.All other costs remain the same (1st process fixed = $50,000 / year,1st process variable = $700 / unit,2nd process variable = $200 / unit).What is the new break even quantity between the two processes?
e.Does this change the process selection for the annual sales volume of 600 units? If so,for what range of annual production quantities should you select the first process and the second process?

Analyze the legal effects of an agent's actions on the principal in various scenarios, including incapacity and termination of agency.

Understand the rights and liabilities of parties in agency relationships, including indemnification and liability for contracts.

Evaluate the legal implications when agents act beyond their authority in representation or negotiation contexts.

Appreciate the importance of clear communication and the establishment of agency relationships, including their creation and termination.

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Definitions:

Accentuation Effect

A cognitive bias that involves exaggerating differences between members of distinct groups while minimizing differences within those groups.

Social Impact

The effect that individuals, organizations, or activities have on the well-being of a community or society at large.

Confrontational

Inclined toward or characterized by direct, often hostile opposition or challenge.

Consistent

Referring to something that is uniform, steady, or unchanged over time or across situations.