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?

Identify the concept of temperament and its role in early childhood development.

Recognize the stages of prenatal development (zygote, embryo, fetus) and their characteristics.

Comprehend the concept of a cohort and its influence on developmental research findings.

Understand the impact of environmental factors on prenatal development, including teratogens and maternal health behaviors.

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Definitions:

U.S. Incomes

Refers to the distribution of earnings and wealth among individuals and families within the United States.

Economic Conditions

The state of the economy at a given time, encompassing various factors including employment levels, inflation rate, and GDP growth.

Inflation

The quickness with which the average market prices for goods and services grow, reducing the realm of purchasing.

Unemployment

A situation in which individuals who are able and willing to work cannot find jobs.