2-61 CVP in a Modern Manufacturing Company on pg.


2-61CVP in a Modern Manufacturing Company on pg. 87A resistance of Hewelett-Packard Company newfangled its genesis actions from one where a capacious work validity assembled electronic components to an automated genesis dexterity dominated by computer-controlled robots.  The substitute was needful owing of savage competitive pressures.  Improvements in character, reliability, and flexibility of genesis schedules were needful orderly to pair race.  As a development of the substitute, fickle costs subvert and unwandering costs increased, as shown in the forthcoming productive budgets:Old Genesis OperationOld Genesis OperationUnit fickle cost    Material            $0.88             $0.88     Labor                     $1.22              0.22Total per part            $2.10             $1.10 Monthly unwandering costs    Rent and depreciation450,000.00          $875,000.00     Supervisory work 80,000.00 175,000.00     Other                   50,000.00 90,000.00 Total per month        $580,000.00       $1,140,000.00 Expected tome is 600,000 parts per month, delay each part selling for $3.10 Capacity is 800,000 parts.1. Compute the budgeted use as the expected tome of 600,000 parts inferiorneathneath twain the old and the new genesis environments.2. Compute the budgeted break-even sharp-end inferiorneathneath twain the old and the new genesis environments.3 .Discuss the pi on uses if tome falls to 500,000 parts inferiorneathneath twain the old and the new genesis environments.4 .Discuss the pi on uses if tome increases to 700,000 parts inferiorneathneath twain the old and the new genesis environments.5 .Comment on the riskiness of the new action versus the old action.

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