Use the information below to answer the following question(s) .
A small automotive parts manufacturer is evaluating opening a new manufacturing plant for assembly of its battery chargers line.The location being considered has a monthly fixed cost of $42,000 and a variable cost of $3 per charger.Chargers sell for $ 7 each.
-The other option (in addition to the option of opening a new manufacturing plant) being considered is subcontracting the work to an external vendor.This option has a monthly fixed cost of $6,000 and a variable cost of $5 per charger.Chargers continue to sell for $7 each.What is the break-even point for the subcontracting option in units per month?
A) 6,000
B) 3,000
C) 10,000
D) 7,500
Correct Answer:
Verified
Q1: The process which is most capital-intensive and
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Q4: What is takt time?
A)Time between placement and
Q5: The process which requires high worker skill
Q6: Comparing various process options and their relationship
Q7: The benefits of flexible manufacturing systems (FMS)include
A)moderate
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Q11: In a process map,a rectangle indicates
A)a decision.
B)work
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