Chrysler Inc has a 1 year contract to produce 200,000 gear housing for a new electric hybrid vehicle Dan Mitchell, the CEO, has developed cost estimates for three different process strategies Complete a crossover chart and make a recommendation with respect to which process would be most appropriate using your results Be sure to include a text box with a short paragraph stating what your recommendation is and how you came up with it (Note It is unlikely that excel will generate a chart that is useful without some modifications You will need to try out different starting points for your number of units produced as well as the increment you increase the amounts by You are also going to need to look at the values in your table of data to pinpoint where the crossover points are I don't think you will be able to generate a chart where you can read this off the graph with enough precision) General Purpose Equipment Strategy Flexible Manufacturing Strategy Dedicated Equipment Strategy Annual Volume 200,000 200,000 200,000 Fixed Cost $100,000 $200,000 $500,000 Variable per unit cost $15,00 $14,00 $13 00 Re analyze the problem in question 1 under the assumption that the contract would change to a 2 year contract Assume that your fixed costs are a one time investment So for example, the fixed costs of 100,000 for the GEP strategy would not change even though the contract is now for 2 years with an annual demand of 200,000 units per year What is your recommendation and why Make sure this analysis is done on a separate tab and that the tabs are labeled indicating the problem number Include a recommendation based on the revised information and explain how you came up with your answer Determine the breakeven point for each of the three processes in question 1 Assume a selling price of $17 per unit What is your recommendations based on your analysis Report your results in complete sentence(s) Assume marketing overestimated both the demand and the price consumers are willing to pay for this product If the actual selling prices is $16 per unit and the demand is anticipated to be 100,000 units per year Based on a BEP analysis, which process would you choose and why Justify your answer

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Chrysler Inc has a 1 year contract to produce 200,000 gear housing for a new electric hybrid vehicle. Dan Mitchell, the CEO, has developed cost

Chrysler Inc has a 1 year contract to produce 200,000 gear housing for a new electric hybrid vehicle. Dan Mitchell, the CEO, has developed cost estimates for three different process strategies. Complete a crossover chart and make a recommendation with respect to which process would be most appropriate using your results. Be sure to include a text box with a short paragraph stating what your recommendation is and how you came up with it. (Note: It is unlikely that excel will generate a chart that is useful without some modifications. You will need to try out different starting points for your number of units produced as well as the increment you increase the amounts by. You are also going to need to look at the values in your table of data to pinpoint where the crossover points are. I don't think you will be able to generate a chart where you can read this off the graph with enough precision)

	General Purpose Equipment Strategy	Flexible Manufacturing Strategy	Dedicated Equipment Strategy
Annual Volume	200,000	200,000	200,000
Fixed Cost	$100,000	$200,000	$500,000
Variable per unit cost	$15,00	$14,00	$13.00

Re-analyze the problem in question 1 under the assumption that the contract would change to a 2 year contract. Assume that your fixed costs are a one-time investment. So for example, the fixed costs of 100,000 for the GEP strategy would not change even though the contract is now for 2 years with an annual demand of 200,000 units per year. What is your recommendation and why? Make sure this analysis is done on a separate tab and that the tabs are labeled indicating the problem number. Include a recommendation based on the revised information and explain how you came up with your answer.

Determine the breakeven point for each of the three processes in question 1. Assume a selling price of $17 per unit. What is your recommendations based on your analysis. Report your results in complete sentence(s).

Assume marketing overestimated both the demand and the price consumers are willing to pay for this product. If the actual selling prices is $16 per unit and the demand is anticipated to be 100,000 units per year. Based on a BEP analysis, which process would you choose and why? Justify your answer.