Question
2 a) Table 2 shows the total annual fixed costs based on number of machines and the range of output for ABC Company. The variable
2 a) Table 2 shows the total annual fixed costs based on number of machines and the range of output for ABC Company. The variable cost is RM12 per unit and revenue RM42 per unit. ii) b) Table 2 Total Annual Fixed Number of Machines Costs (RM) Corresponding Range of Output 1 2 12,000 15,000 0 to 300 301 to 600 3 24,000 601 to 900 Compute the break-even point for range (0 to 300). (3 marks) If projected annual demand is between 580 and 650 units, how many machines should the manager purchase? Justify. (4 marks) Identify the five steps of the graphical method of aggregate planning. Explain is it possible that these steps can be properly followed and the solution properly implemented without using a graph? (6 marks) XYZ Industries is preparing its aggregate plan for the second half of the year. Table 3 shows the monthly estimates demand and working days per month, Plot a graph to illustrate and discuss the nature of the aggregate plan. Propose ONE (1) strategy for meeting the forecast. (12 marks) Table 3 Month Expected Demand Production Days " July 18,000 20 L August 21,000. 23 September 17,500 21 4 October 12,500 21- S November 12,000 20 December 13,500 6 21 -0000000- SULIT
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