1. If a company has fixed costs of $3,500,000; variable costs of $375 per item; and a projected sales price of $5000, what is the breakeven point for the company?
What other piece of information does the company need in order to make a decision based on the break even analysis?
2. What is the point of indifference given the following information?
Machine A: fixed costs = $3,500,000; variable costs = $75
Machine B: Fixed Costs = 5,500,000; variable costs = $35
If the forecast is for 15,000 items, which process should the company choose?
What is the goal of process design?
If you want to improve a process, what is the first thing you should do?
What is the systems availability for a product if the average time between breakdowns = 500 days and the average time to repair it is 2 days?
Why is it important to do process development and product development concurrently?
Why does the company need to relook the Break Even Point during process development?