Questions from General Operations Management


Q: Smithson Cutting is opening a new line of scissors for supermarket distribution

Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to aver...

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Q: Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by

Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and fo...

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Q: Using the data in Problem S7.17: a)

Using the data in Problem S7.17: a) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost? b) What is the break-even point in dollars for proposal B...

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Q: Given the data in Problem S7.17, at what volume

Given the data in Problem S7.17, at what volume (units) of output would the two alternatives yield the same profit? Data from Problem S7.17: Sroufe Manufacturing intends to increase capacity by overc...

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Q: For the past month, which has an effective capacity of 6

For the past month, which has an effective capacity of 6,500, has made only 4,500 hammers per day because of material delay, employee absences, and other problems. What is its efficiency?

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Q: Janelle Heinke, the owner of Ha’Peppas! is considering a new

Janelle Heinke, the owner of Ha’Peppas! is considering a new oven in which to bake the firm’s signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated wit...

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Q: Given the following data, calculate a) BEPx; b)

Given the following data, calculate a) BEPx; b) BEP$; and c) the profit at 100,000 units: P = $8/unit V = $4/unit F = $50,000

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Q: You are considering opening a copy service in the student union.

You are considering opening a copy service in the student union. You estimate your fixed cost at $15,000 and the variable cost of each copy sold at $.01. You expect the selling price to average $.05....

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Q: Distinguish between bottleneck time and throughput time.

Distinguish between bottleneck time and throughput time.

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Q: An electronics firm is currently manufacturing an item that has a variable

An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000. Current volume is 30,000 units. The fir...

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