1. What is meant by a process? Describe its important features. (2 Marks)
2. What is a customer order decoupling point? Why is it important? (2 Marks)
3. It has been noted that during World War II Germany made a critical mistake by having its formidable Tiger tanks produced by locomotive manufacturers, while American car manufacturers produced the less formidable U.S. Sherman tank. Use the product-process matrix to explain that mistake and its likely result. (2 Marks)
4. What’s the relationship between the design of a manufacturing process and the firm’s strategic competitive dimensions (Chapter 2)? (2 Marks)
5. A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy. (3 Marks)a. How many books must be sold to break even? b. If the fixed cost increased, would the new break-even point be higher or lower? c. If the variable cost per unit decreased, would the new break-even point be higher or lower?
6. Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50.a. What is the break-even point? (1 Mark)b. How many units must be sold to make a profit of $500.00? (1 Mark)c. How many units must be sold to average $0.25 profit per unit? $0.50 profit per unit? $1.50 profit per unit? (1 Mark)
7. A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. Fixed cost for the firm is $20,000. a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (3 Marks)b. If the sales mix changes to 1:4 (one chair sold for every four bar stools sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (3 Marks)