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(TCO 8) A product is currently made in a process-focused shop, where fixed costs are $10,000 per year and variable cost is $50 per unit.

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1. (TCO 8) A product is currently made in a process-focused shop, where fixed costs are $10,000 per year and variable cost is $50 per unit. The firm sells the product for $250 per unit. What is the break-even point for this operation?

2. (TCO 9) A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.

Factor

Weight

Midtown

Bayside

Affluence of local population

.30

40

40

Traffic flow

.10

50

20

Parking availability

.40

30

40

Growth potential

.20

20

10

 

The score for Midtown is _____ and the score for Bayside is ______.

3. (TCO 8) A fleet repair facility has a design capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each and only 500 trucks were repaired. What is the utilization of the repair shop last month?

4. (TCO 8) A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 300 trucks were repaired. What was the efficiency of the repair shop last month?

5. (TCO 8) Which of the following costs would not be incurred even if no units are produced?

6. (TCO 8) Fixed costs are:

7. (TCO 9) Which of these factors would be considered when making a location decision at the site level?

8.(TCO 9) When making a location decision at the site level, which of these would be considered?

9. (TCO 9) Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

1. (TCO 8) What are the four special considerations for a good capacity decision?

2. (TCO 8) What is the fundamental distinction between design capacity and effective capacity?

3. (TCO 9) What is the objective of a location strategy?

4. (TCO 9) Why is the factor-rating method popular?

5. (TCO 9) What is clustering?

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