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    The document contains information about 5 different manufacturing processes (A, B, C, D, E) including their fixed costs, variable costs per unit, and total costs for various quantities produced. It provides a decision rule for which process to choose based on the quantity needed: for quantities less than 400, choose process E; for quantities between 400 and 1000, choose process A; and for quantities over 1000, choose process C.

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    The document contains information about 5 different manufacturing processes (A, B, C, D, E) including their fixed costs, variable costs per unit, and total costs for various quantities produced. It provides a decision rule for which process to choose based on the quantity needed: for quantities less than 400, choose process E; for quantities between 400 and 1000, choose process A; and for quantities over 1000, choose process C.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    13 views8 pages

    Total Cost

    Uploaded by

    dummy account
    The document contains information about 5 different manufacturing processes (A, B, C, D, E) including their fixed costs, variable costs per unit, and total costs for various quantities produced. It provides a decision rule for which process to choose based on the quantity needed: for quantities less than 400, choose process E; for quantities between 400 and 1000, choose process A; and for quantities over 1000, choose process C.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 8

    X Y1 Y2

    0 9 10
    1 11 13
    2 13 16
    3 15 19
    4 17 22
    5 19 25

    Chart T
    30

    25
    f(x) = 3x + 10
    20
    f(x) = 2x + 9
    15

    10

    0
    0 1 2 3
    Y1
    Y2
    Chart Title

    3x + 10

    2x + 9

    1 2 3 4 5 6
    Y1 Li near (Y1)
    Y2 Li near (Y2)
    Y1 = 5x+20
    Y2 = -2x + 50 Chart Title
    60
    X Y1 Y2
    0 20 50 50
    f(x) = - 2x + 50
    1 25 48
    2 30 46 40
    3 35 44 f(x) = 5x + 20

    4 40 42 30

    20

    10

    0
    0 0.5 1 1.5 2 2.5 3 3.5 4
    Y1 Li nea r (Y1) Y2 Li nea r (Y2)
    e

    .5 3 3.5 4 4.5
    Y2 Li nea r (Y2)
    PROCESS A PROCESS B PROCESS C
    FC 10,000 20,000 50,000
    VC/UNIT 5 4 2

    Q TCA TCB TCC


    0 10000 20000 50000
    1,000 15000 24000 52000 120000
    2000 20000 28000 54000
    3,000 25000 32000 56000
    100000
    4000 30000 36000 58000
    5,000 35000 40000 60000
    80000
    6000 40000 44000 62000
    7,000 45000 48000 64000
    8000 50000 52000 66000 60000
    9,000 55000 56000 68000
    10000 60000 60000 70000 40000
    11,000 65000 64000 72000
    12000 70000 68000 74000
    20000
    13,000 75000 72000 76000
    14000 80000 76000 78000
    0
    15,000 85000 80000 80000 0 2000 4000 6000 80
    16000 90000 84000 82000
    17,000 95000 88000 84000
    18000 100000 92000 86000
    19,000 105000 96000 88000
    20000 110000 100000 90000
    21,000 115000 104000 92000
    22000 120000 108000 94000

    Q TCA TCB DIFFERENCE


    10000 60000 60000 0 < til 0

    Q TCB TCC DIFFERENCE


    0 60,000 50,000 0
    Chart Title

    2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 22000
    TCA TCB TCC
    PROCESS A B C D E
    FC 100,000 150,000 200,000 250,000
    VC/UNIT 250 200 150 150 500

    Q TCA TCB TCC TCD TCE


    0 100000 150000 200000 250000 0
    100 125000 170000 215000 265000 50000 800000
    200 150000 190000 230000 280000 100000
    300 175000 210000 245000 295000 150000 700000
    400 200000 230000 260000 310000 200000
    500 225000 250000 275000 325000 250000
    600000
    600 250000 270000 290000 340000 300000
    700 275000 290000 305000 355000 350000
    800 300000 310000 320000 370000 400000 500000
    900 325000 330000 335000 385000 450000
    1000 350000 350000 350000 400000 500000 400000
    1100 375000 370000 365000 415000 550000
    1200 400000 390000 380000 430000 600000
    1300 425000 410000 395000 445000 650000 300000

    1400 450000 430000 410000 460000 700000


    1500 475000 450000 425000 475000 750000 200000
    1600 500000 470000 440000 490000 800000
    1700 525000 490000 455000 505000 850000
    100000
    1800 550000 510000 470000 520000 900000 E
    1900 575000 530000 485000 535000 950000
    2000 600000 550000 500000 550000 1000000 0
    0 200 400 600
    2100 625000 570000 515000 565000 1050000
    TCA T
    2200 650000 590000 530000 580000 1100000

    Q TCA TCC DIFFERENCE 0 < Q < 400 -CHOOSE PROCESS


    1000 350000 350000 0 400<Q<1000 CHOOSE PROCESS
    Q < 1000 CHOOSE PROCESS C
    Q TCA TCE DIFFERENCE
    400 200000 200000 0
    Chart Title

    pt. n

    C
    pt. m A

    00 400 600 800 1000 1200 1400 1600

    TCA TCB TCC TCD TCE

    0 < Q < 400 -CHOOSE PROCESS E (BUY)


    400<Q<1000 CHOOSE PROCESS A
    Q < 1000 CHOOSE PROCESS C

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