Questions from General Operations Management

Q: What are the assumptions of break-even analysis?

What are the assumptions of break-even analysis?

Q: Evaluate the following capital investments according to net present value. Each

Evaluate the following capital investments according to net present value. Each alternative requires an initial investment of $20,000. Assume a 10% cost of capital. Which is the preferred investment?...

Q: Tony and Steve are considering whether to purchase a new “bending

Tony and Steve are considering whether to purchase a new “bending brake.” This machine puts precise bends in a material used in their vinyl siding business. The machine will cost $70,000. Tony and Ste...

Q: Justin Bateh is considering a new machine for his shop. The

Justin Bateh is considering a new machine for his shop. The machine is expected to generate receipts as follows: $50,000 in year 1, $30,000 in year 2, nothing in the next year, and $20,000 in year 4....

Q: Cheryl Druehl needs to purchase a new milling machine. She is

Cheryl Druehl needs to purchase a new milling machine. She is considering two different competing machines. Milling Machine, a will cost $300,000 and will return $80,000 per year for 6 years, with no...

Q: Portland Savings and Loan is considering new computer software, which,

Portland Savings and Loan is considering new computer software, which, because of installation and training cost, will have an unusual pattern of net receipts. The expected receipts are: $20,000 in ye...

Q: Material delays have routinely limited production of household sinks to 400 units

Material delays have routinely limited production of household sinks to 400 units per day. If the plant efficiency is 80%, what is the effective capacity?

Q: The effective capacity and efficiency for the next quarter at MMU Mfg

The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of three departments are shown: Compute the expected production for next quarter for each department.

Q: Southeastern Oklahoma State University’s business program has the facilities and faculty to

Southeastern Oklahoma State University’s business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a “re...

Q: Under ideal conditions, a service bay at a Fast Lube can

Under ideal conditions, a service bay at a Fast Lube can serve 6 cars per hour. The effective capacity and efficiency of a Fast Lube service bay are known to be 5.5 and 0.880, respectively. What is th...