Temple University Operations Management Questions

Jenny Jennarator Co has the motto of placing a Jenny in every home in a state receiving more than 12 inches of snow per year. Facility A can handle 20 generators a month. The costs associated with setting up the production line are $ 22,500 and the material costs are $ 1300.00 per generator. Facility B is larger and can handle 42 generators a month. The costs associated with setting up the production line for generator B are $35,000 and the material costs are $ 950.00 per generator. The generators sell for $2500 each. a. The break-even point in units for generator type A = _____. [ Select ] [“897.5”, “22.580 units”, “18.75 units”, “357.14”] b. The break-even point in dollars for generator type B = _____. [ Select ] [“$46,425”, “$105,000”, “$56,450”, “$25,000”] c. Jenny Jenerator Company’s Chief Procurement Officer (CPO) received a late bid from Facility Q. If Facility Q has a fixed cost of $40,000 and a variable cost of $800.00 per unit, what should Jenny Jenerator do? [ Select ] [“Pick Facility A first, then Facility C”, “Always pick Facility C because of its relatively low variable cost.”, “Pick Facility A first, then Facility C, then Facility B”, “Pick Facility A, then Facility B Jenny’s CPO will never pick Facility C.”] {Hint: Calculate the crossover point between A and B, B and C and, C and A, to find which facility would be the best} 3 questions like that given tomorrow.

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