Devry GSCM209 Week 4 Quiz Latest 2016 Jan.

Devry GSCM209 Week 4 Quiz Latest 2016 Jan.

1. Question : (TCO 6) Which equation best describes the break-even point? (> means greater than, < meansless than, ≥ means greater than or equal to, and ≤ means less than or equal to.)

Total cost (TC) > total revenue (TR)

TC < TR

TC = TR

TC ≥ TR

Question 2. Question : (TCO 6) The formula for utilization is

actual output ÷ effective capacity.

actual output ÷ design capacity.

effective capacity × utilization.

None of the above

Question 3. Question : (TCO 7) An electronics firm is currently manufacturing an item that has a variable cost of $0.40 per unit and a selling price of $1.20 per unit. Fixed costs are $15,000. Current volume is 40,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $8,000. Variable cost would increase to $0.60, but volume should jump to 30,000 units due to a higher quality product. Should the company buy the new equipment?

Question 4. Question : (TCO 8) Bob’s Automated Carwash can service 14 cars per hour. On the average, 16 cars show up every hour. Determine the waiting model to be used, average cars in the system, and average time in the system each hour.

Question 5. Question : (TCO 9) List the three requirements of a linear programming problem.