000 units, my total costs should go up by only $100,000.” Comment. Although the total variable costs would go up by $100,00 if the production were increase from 100,000 to 150,000 units, the amount of total costs is still uncertain. Total costs is the sum of the variable costs and fixed costs, so in this situation, the total costs can still go higher than $100,000. The fixed costs such as rent, management salaries or other fixed costs can still change and increase therefore the total cost would
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Operations Management School of Engineering The University of the Thai Chamber of Commerce Operations Management UTCC Product and Service Design School of Engineering The University of the Thai Chamber of Commerce Operations Management UTCC Operations Management UTCC Agenda • The need for product and service design or redesign • Sources of ideas for design or redesign • Design elements for both manufacturing and service. Operations Management UTCC Product and
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Situation Analysis: Kanpur Confectionaries Private Limited (KCPL) was the second largest biscuit manufacturer in the Northern region in 1973-74, with monthly sales of 110 tonnes under its MKG brand. In 1980-81,with a view to grow further in the region and also expand into the national market, the production capacity was doubled to 240 tonnes, but only 50% of that capacity is currently being utilized for the MKG brand. In the past 13 years, the MKG brand has grown by only 9.1%, even though the production
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00+117,903.00=$642,903.00 Variable Costs= Payroll and Benefits + Supplies $417,004.00 + 125,101.00=$542,105.00 Formula for the Break-even point PX=A + BX P= Total agency revenue divided by total number of customers $1,165,065/5,962=$195.42 income per customer X= break-even point A=$642,903.00 B= Total variable cost divided by the total number of customers $542,105/5,962=$90.93 variable cost per client 195.42x=642,903 + 90.93x 104.49x=642,903 X=6,152.77 or 6,153 clients Analyzing
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statements below is true at a production level of 4 units? Quantity | Total Revenue | Total Cost | 0 | $0 | $4 | 1 | $20 | $14 | 2 | $40 | $26 | 3 | $60 | $40 | 4 | $80 | $56 | 6 | $120 | $94 | 7 | $140 | $116 | 8 | $160 | $140 | 9 | $180 | $166 | Choose one answer. | a. Marginal cost is $6. | | | b. Total revenue is greater than total variable cost. | | | c. Total revenue is greater than total cost. | | | d. Marginal revenue is less than marginal cost. | |
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Carey Hite Teddy Dinker Feasibility Study: CollegeCloseUp The Virtual College Visit CollegeCloseUp offers prospective college students a visually intriguing look into a University’s student life outside of academics. The service provides a unique perspective into the lives of a diversity of students from every campus. This practical tool also incorporates user-generated information for the bulk of its production. Through the generation of this information, prospective students gain an unprecedented
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Basic Concepts Paper Charles Lloyd Eco/415 October 19, 2012 George Flemming Basic Concepts Paper Circumstances, which are different, can have a major affect on supply and demand. The simulation in this week’s assignment deals with the curves of supply and demand and how they are affected by the changing of situations that happens in the city of Atlantis with the two-bedroom apartments. Changes were supposed to be made depending on the findings and results made within the Atlantis community
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CHAPTER 22 MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING, AND MULTINATIONAL CONSIDERATIONS 22-1 A management control system is a means of gathering and using information to aid and coordinate the planning and control decisions throughout the organization and to guide the behavior of its managers and employees. The goal of the system is to improve the collective decisions within an organization. 22-2 To be effective, management control systems should be (a) closely aligned to an organization's
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not make a profit unless it covers the fixed cost as well. The level of operation at which total costs are just covered is the break-even volume. This should be the lower limit in all our planning.” Question 1 What are the assumptions implicit in Bill French’s determination of his company’s break-even point? 1. There was only one break-even point for the firm whether product by product or in total (he taking average of 3 products). Refer to the table below. | A | B | C | Aggregate | Sales
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CASE STUDY ANALYSIS A-CHAPTER 5 (by Yagmur Pekoz) Question 1: Explain fully how auto manufacturers should choose among substitutable inputs and production processes. Discuss in detail and apply the related concepts. Answer 1: Both the demand and the unit price for steel have increased in recent years. Unfortunately, auto manufacturers use large quantity of steel in their production process. In order to compensate for the adverse effect of increased unit price of steel, auto manufacturers changed
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