### (Solved)Exercises Capacity Planning Calculate the Break Even Poi

Exercises Capacity Planning
Calculate the Break Even Point
we are producing widgets with a fixed cost of 50k Euro and a unit cost of 5 Euro. We sell them for 25Euro. Draw this situation and calculate the break even point
Exercises Capacity Planning 1. Calculate the Break Even Point We are producing widgets with a fixed cost of 50k Euro and a unit cost of 5 Euro. We sell them for 25 Euro. Draw this situation and calculate the break even point 2. Calculate the switch over point We are producing the same widgets as in the previous example. We got an offer from a producer to make the widgets for us. This reduces our fixed costs to 15k Euro and they sell us the widgets for 7.5 Euro per piece. Up to what amount, will this be interesting for us? From what amount will it be better to produce ourselves? Estimate the capacity requirements for a single product In our company we have a machine available for 220 days per year at 7.5 hours per day. We foresee buffer of 10% for unexpected events and maintenance. On this machine we will produce 50,000 parts, every part takes 2 minutes to produce. How many machines will we need to cover our production? 3. Estimate the capacity requirements for a series of products We consider the same machine for production and availability as before. Now we add two products to the production line and we produce as displayed in the table below 4. Quantity Batch Set Up time 50,000 25,000 75,000 Time 2 minutes 5 minutes 1 minute 200 500 1000 30 minutes 60 minutes 45 minutes