Scenario 2.4
A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows:

-Use Scenario 2.4 to answer this question. What is the monthly break-even quantity for choosing between the two automation approaches?
A) 1,000 units
B) 2,000 units
C) 6,000 units
D) 12,000 units

Question

Scenario 2.4
A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows:
 
-Use Scenario 2.4 to answer this question. What is the monthly break-even quantity for choosing between the two automation approaches?
A) 1,000 units 
B) 2,000 units 
C) 6,000 units 
D) 12,000 units

Quizplus · Accepted Answer

Based on the calculations in Scenario 2.4, the monthly break-even quantities for Option A and Option B are 3,000 units and 2,000 units, respectively. Therefore, choosing Option B would result in a lower monthly break-even quantity and is the best choice.

Scenario 2.4 a Company Is Considering Two Options for the Production of Production