To cope up with the demand in supply, a plant manager has to decide on to how many machines should be purchased as an additional to their existing ones. The budget can only accommodate up to 3...

To cope up with the demand in supply, a plant manager has to decide on to how many machines should be purchased as an additional to their existing ones. The budget can only accommodate up to 3 machines, but the Finance team is requiring him to show the impact if they will acquire one, two or three machines. Data shown below:

Variable cost is



350



per unit and revenue is 600 per unit.

(a) Determine the break-even point for each range

(b) If projected demand is between 8500 and 9000 units how many machines should the manager purchase?

1. How the following organizations adjust to the daily fluctuations in demand? Explain each.

(a) Airlines (b) Restaurants (c) Fitness Salon (e) Face shield manufacturer