Breakeven Analysis POM QM
Looking for breakeven analysis on the following below. There are two problems that need to be solved (6-9 and 6-10). The other requirements are listed
.Breakeven Analysis POM
Competencies Addressed in This Assignment and Aligned to Learning Outcomes
The following competencies align with indicated learning outcomes and each criterion for the assignment aligns to a competency.
Competency 2: Assess operations functions needed to operate effectively and efficiently in a global environment..
oLearning Outcome: Manage a firm’s global operations for both effectiveness and efficiency.
Use the POM-QM for Windows software and accompanying Weiss manual available online in the POM help menu to solve the following problems from your Operations Management textbook:
Problem 6-9 (page 255).
Problem 6-10 (page 255).
In this assignment, you demonstrate your knowledge of determining the optimum process selection with breakeven analysis.
You may want to refer to the PowerPoint presentation in the Resources for step-by-step help.
Use the Web site found in the Resources to download .zip files with the installation package you need for this unit’s assignment. You will also find a download package if you are using OM for Macs.
Place your assignment in either a MS Word or MS Excel document and meet the following criteria:
4.Submit correct solutions:
oThe required elements for problem 6-9: (a) correctly use the fixed costs and variable costs calculating the BEQ for each of the three processes, and (b) determine the best process for any given quantity.
oFor problem 6-10: (a) correctly use the fixed costs and variable costs calculating the BEQ for each of the three processes, and (b) determine the best process for any given quantity.
5.Write 3 paragraphs that demonstrate your knowledge of the concepts from the assigned reading related to the problem solutions.
6.Write 3 paragraphs that explain the solution using the concepts from the assigned reading that relate to the solution.
Must be written in APA and appropriate headers.
6-9.Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either process A or process B, or purchased from a supplier. Cost data are given below. For what levels of demand should each process be chosen?
Fixed Cost | Variable Cost | |
Process A | $ 8,000 | $10 |
Process B | $20,000 | $ 4 |
Supplier | $ 0 | $20 |
6-10.NanoTech is ready to begin production of its exciting new technology. The company is evaluating three methods of production: (A) a small production facility with older equipment, (B) a larger production facility that is more automated, and (C) subcontracting to an electronics manufacturer in Singapore. The costs of each alternative are shown below. Determine for what level of demand each production process should be chosen.
Process | Fixed Cost | Variable Cost |
A | $200,000 | $40 |
B | $600,000 | $20 |
C | $ 0 | $60 |
(Russell 255)
Russell, Roberta S., Bernard Taylor. Operations and Supply Chain Management, 8th Edition. Wiley, 2013-12-02. VitalBook file.