Cost functions and identifying cost structure
Not what you're looking for?
The precedence diagram and task times (in seconds) for assembling a Product X are as shown. Tasks A and C have been assigned to Workstation 1; Tasks B and D have been assigned to Workstation 2. If you were to assign tasks to work stations by using the task with longest processing time rule, the first assigned task for Workstation 3 is
A.E
B.F
C.G
D.H
E.I
2. A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit. The following cost information describes the two alternatives
Process A Process B
Fixed Cost $500,000 $750,000
Variable Cost per Unit $25.00 $23.00
For what level of volume (output) would the firm prefer Process A to Process B?
A.for all volume levels greater than 75,000
B.for all volume levels greater than 97,500
C.for all volume levels greater than 117,500
D.for all volume levels greater than 125,000
3. In the breakeven analysis, the vertical intercept of the total cost function is the
A.fixed cost
B.price
C.variable cost
D.volume
E.none of the above.
Purchase this Solution
Solution Summary
The solution helps in identifying the cost structure.
Solution Preview
The precedence diagram and task times (in seconds) for assembling a Product X are as shown. Tasks A and C have been assigned to Workstation 1; Tasks B and D have been assigned to Workstation 2. If you were to assign tasks to work stations by using the task with longest processing time rule, the first assigned task for Workstation 3 ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations