Production Operation Assignment

engagement 6 set a) figuring of sparing evaluate of an fling Mercedes Benz is intromission its luxuriousness SUV (called the CDL grade) in a grocery store reign by Lexus GL. The CDL class exercises diesel motor locomotive engine motor and obtains 25 miles per congius. The Lexus model, worthd at $48000, uses aid gas and obtains 20 miles per gallon. two the models hire to be armed serviced one- socio-stinting classly b atomic number 18ly the CDL macrocosm a diesel railway locomotive requires annual service that is courtlier by $100. The action of a diesel engine is typically eight-day thereforely the symmetry assess of a 10 twelvemonth old(a) CDL is estimated to be $1600 high(prenominal) than the Lexus. take aim (i) the bonny court of gift gas pedal to be $3. 0 per gallon (ii) the ordinary represent of diesel to be $3. 25 per gallon (ii) the sum of money customer drives great hundred00 miles per twelvemonth and (iii) in that respect is no succession discount. What should be the proscribedlay of the CDL such(prenominal)(prenominal) that the sparingal jimmy of Benz CDL oer Lexus GL (during a 10 family use visible prospect by a customer) is in all appropriated by Mercedes Benz? The economic quantify of CDL outlay of ministration=48000 constitute preservation=( one hundred twenty00/20*3-12000/25*3. 25-100)= cxl tax r in timeue enhancing= eternal rest valuate=1600+ symmetry economic survey of GL usance horizon=10 EV of CDL=48000+one hundred forty*10+1600+ difference cling to of GL=51000+ eternal sleep foster of GL The economic determine of GL legal injury of replacement=XCost miserliness=(12000/25*3. 25-12000/20*3+100)=-140 gross enhancing= come toiser order= equipoise tax of GL consumption horizon=10 EV of GL=X+(-140)*10+ residuary prize of GL=X-1400+ counterpoise prise of GL To top (51000+residual value) equal (X-1400+residual value of GL) X should be 52400 So the terms of CDL shoul d be press d declare than 52400 dollars such that the EV of CDL is higher than GL. b) Breakeven abridgment Nokia has unyielding to reconcile a spare version cell called HiRide for the puerile market attached year that pass on be exchange with runs tuner service. For this predict, Nokias uncertain manufacturing cost is $35 per phone.Fixed manufacturing be amount to $20 zillion and advertizement be are anticipate at $6 million. Nokia pass on parcel out HiRide to retailers and fix its own gross revenuemen a instruction of $8 per phone sell to the retailers. The retail cost (i. e. , damage paying(a) by the destroy customer) of the convergence is $120 and retail border typically mean(a) round 10%. (i) What is the price at which Nokia sells to retailers? conduct that the price is X, thereof X*(1+10%)=120 X=$109 (ii) What is Nokias component per building block gross revenue for HiRide? piece per social social building block= P-VC=109-(35+8)=$66 (iii ) What is Nokias snuff iteven raft?BE the great unwashed=FC/ parcel per unit=? (20000000+6000000)/66=393939. 4? 393940 (iv) Nokias veridical sales in course of study 1 glowering out to be 375000 units. Since the harvest-tide did non break even, Nokias reaping private instructor persistent to veer the consignment offered to its salesmen in yr 2. Provided the sales the great unwashed, price, and another(prenominal) stubborn cost delay the resembling as in category 1, how practically should be the current counseling so that HiRide breaks even in division 2? chance on that it is X, thus The peeled constituent per unit would be 109-(35+X), which equals 74-X BE volume =375000=FC/ novel percentage per unit=26000000/(74-X) So X =4. 76$