BSOP 209 Operations Analysis
Week 3 Assignment:
Markland 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 for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.
a) What is the break-even point in units for proposal A?
Discussion Questions (Case Study)
1. Develop a forecasting model, justifying its selection over other techniques, and project attendance through 2011.
2. What revenues are to be expected in 2010 and 2011?
3. Discuss the school’s options