Question

Three alternative designs have been created by engi- neers for a new machine that inspects solar power photovoltaic cells for home use. The costs for the three designs (where x is the annual production rate) follow: 2-19 Design Fixed Cost Variable Cost(S/x) A $100,000 350,000 600,000 20.5x 0.5x 8.0x
(a) Management is interested in the production inter- val of 0-150,000 cells per year. Mathematically determine the production volume over which each design (A or B or C) would be chosen. (b) Depict your solution from part (a) graphically, clearly labeling your axes and including a title for the graph, so that management can easily see the following: i. Accurate total cost lines for each alternative (show line, slopes, and line equations) ii. Any relevant breakeven or crossover points iii. Ranges of annual production where each alternative is preferred. 50 c) Our decision rule is to minimize total cost across the range of output. How would your analysis approach change if some alternative produced ts an ethical dilemma? Describe your thinking
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Answer #1

Desqun iA.cd etus3,So,0oo o.sx 6, 00,000 +8.0x χ< 1,00,000d be seto ) F81 χ betrocu 1.co.ooo to 1,5 c ,000 1C would be Tetin,b) Total cost table is given by :

10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 110000 120000 130000 140000 150000 100000 305000 510000 715000 9

Graph as desired in question is

3500000 3000000 у-20.5х + 100000 2500000 у: 105х + 350000 2000000 1500000 у: 8х + 600000 1000000 500000 iD 20000 40000 60000

ii) All relevant break-even and crossover point is discussed earlier.

iii) Design A preferred in range [ 0, 25000]

Design B preferred in range [ 25000, 100000]

Design C preferred in range [ 100000, 150000]

(C)  

if one of the alternative produce ethical dilemma like in this example project is related to solar plants so may be the any design produce any dilemma , we can reject that alternative and choose different alternative or we can control our production as per best ethical solution to provide minimum cost. We can split our production in multiple other areas where such ethical problems are no there like environment related issues etc.

This may helps you. Hit a like if you are satisfied with my answer .

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