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Question 1 Premier Manufacturers is planning to introduce a new product in the next period 2022. It is expected that 10000 units can be
Question 1 Premier Manufacturers is planning to introduce a new product in the next period 2022. It is expected that 10000 units can be sold at a selling price of 75. The production manager has put forward two possible production methods. The following financial information has been prepared for each of the alternatives. Capital Expenditure Maximum Capacity(units) Unit Costs Direct materials Direct Labour Variable Production Costs Fixed production Costs Required a) Alt A 800,000 15000 4555 15 15 700000 For each of the alternatives determine i) ii) Breakeven point in units Breakeven point in revenue The Margin of Safety Alt B 600,000 12000 10 20 20 200000
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Automation Production Systems and Computer Integrated Manufacturing
Authors: Mikell P.Groover
3rd edition
132393212, 978-0132393218
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