Answer:
The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero
Break Even sales for Company wide = $378,000
Break Even Value for Chicago is $111,429
And Break Even Value for Minneapolis is $120,000
The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.
Explanation:
Answer:
12.55 days
Explanation:
<em><u>Provided information </u></em>
Number of employees 2
Average production time=1.8 days
Standard deviation=2.7 days
Inter-arrival time= 1 day
Coefficient of variation= 1 day
Standard deviation of inter-arrival time= 1 day
The coefficient of variations
<u>Inter-arrival coefficient of variation </u>
where
is standard deviation of inter-arrival time, T is inter-arrival time and
is coefficient of variation of inter-arrival time
<u>Production time coefficient of variation </u>
<u><em>Total utilization time </em></u>
where T is the time of production, n is number of employees, U is utilization,
is inter-arrival time
Therefore, utilization time by 2 employees is 0.9
<u>Expected average waiting time </u>
Where is expected average waiting time and the other symbols as already defined
Substituting 1.5 for , 1 for
, 0.9 for U, 2 for n, 1 for
and 1.8 for T
and rounding off to 2 decimal places we obtain 12.55 days
Therefore, expected duration between order received and beginning of production is approximately 12.55 days