1. Lead Instruments has designed a laboratory microcentrifuge and the firms operations manager is calculating its production costs. The variable cost of each laboratory microcentrifuge is $10; the fixed cost per year is estimated at $10,000; the revenue generated by selling each laboratory microcentrifuge is $20.

a.) How many laboratory microcentrifuges should the firm sell to break-even?

b.) If the firm sells 2,000 laboratory microcentrifuges, what is the contribution to profit?

2. Lead Instruments has designed a laboratory microcentrifuge and the firms operations manager is calculating its process needs. The tasks, task times, and the preceding tasks; and the precedence relationships are given below. The firm works two eight-hour shifts in a day and produces six hundred units of laboratory microcentrifuges.

Task	Task Time (seconds)	Preceding Task
A	30
B	20	A
C	30	B
D	40	C
E	60	D

a.) Calculate the cycle time per day.

b.) Calculate the minimum number of workstations required.