Question.4351 - Homework Assignment 3DetailsAnswer all of the following questions. Make sure to show all your calculations work. 1) If a plant has a design capacity of 3,000 and utilization of 60%, what is the actual output? 2) A company makes 1,000 hammers per day. Fixed costs are $5,000.00 per day and variable costs are $15.00 per unit. Compute the total costs of the company per day. 3) Canton Inc. has fixed costs of $20,000 in a certain period of time. Direct labor cost is $3.00 per unit, and material cost is $2.00 per unit. The selling price is $10.00 per unit. What is the break-even point in units and in dollars? 4) Simon Company has two production proposals to consider. Proposal A has fixed costs of $50,000.00 per year and variable costs of $50.00 per unit. Proposal B has fixed costs of $30,000.00 per year and variables costs of $60.00 per unit. The selling price is $100 per unit for either option. What is the break-even point in units for each proposal? What is the indifference point quantity? 5) A firm’s manager must decide whether to make or buy a certain item used in the production of vending machines. Making the item would involve annual lease costs of $150,000. Cost and volume estimates are as follows: MakeBuyAnnual fixed cost$150,000NoneVariable cost/unit$60$80Annual volume12,00012,000a) Given these numbers, should the firm buy or make this item?b) There is a possibility that the volume could change in the future. At what volume would the manager be indifferent between making and buying? You can refer to this rubric for expectations for this homework assignment: MGT 360 OT1 Homework and Discussion Rubric, Spring 2025.pdf: MGT 360 OT 1 - Operations and Logistics Management
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Running xxxx HOMEWORK xxxxxxxxxx Homework xxxxxxxxxx Quincy xxxxxxxxxxxxx of xxxxxxxx If x plant xxx a xxxxxx capacity xx and xxxxxxxxxxx of xxxx is xxx actual xxxxxx Utilization xxxxxx Output xxxxxx Capacity xxxxxxxxx Actual xxxxxx Utilization xxxxxx Capacity xxxxxx Output xx the xxxxxx output xx units xxxxxx of xxxxxxxx Given xxxxx Costs xxxxxxxx Cost xxx Unit xxxxxx of xxxxx Total xxxx So xxx total xxxx per xxx is xxxxxx of xxxxxxxx BEP xxxxx Fixed xxxxx Selling xxxxx per xxxx Variable xxxx per xxxx Where xxxxx Costs xxxxxxx Price xxx Unit xxxxxxxx Cost xxx Unit xxxxxx Labor xxxx Material xxxx BEP xxxxxxxx dollars xxxxxxxxxx point xx units xxxxx Break-even xxxxx in xxxxxxx Answer xx Question xxx units xxxxx Costs xxxxxxx price xxx unit xxxxxxxx cost xxx unit xxxxxxxx A xxxxx Costs xxxxxxxx Cost xxx Unit xxxxxxx Price xxx Unit xxx unitsProposal x Fixed xxxxx Variable xxxx per xxxx Selling xxxxx per xxxx BEP xxxxxxxx Total xxxx Fixed xxxxx Variable xxxx per xxxx Quantity xxxxxxxxx Q x Q x unitsBreak-even xxxxx for xxxxxxxx A xxxxx Break-even xxxxx for xxxxxxxx B xxxxx Indifference xxxxx quantity xxxxx Answer xx Question xxxxx Cost xxxxx Costs xxxxxxxx Cost xxx Unit xxxxxxxx Making xxxx Total xxxx Purchasing xxxx Since xxx firm xxxxxx make xxx item xxxxxxx it xx cheaper xx per xxxx The xxxx should xxxx the xxxx Total xxxx for xxxxxx the xxxx Q xxxxx cost xxx purchasing xxx item xxxxxxxxxx Q x Q x Therefore xx Q xxxxxx is xxxxxxx If x making xx cheaper xx Q xxxxx costs xxx the xxxx for xxxx options xx the xxxxxxxxxxxx point xx units xxxxxxxxxx R xxxxxx and x B xxxxx Operations xxx Supply xxxxx Management xx ed xxxxxx HillMore Articles From MGT 360 OT 1 - Operations and Logistics Management