Texloy Manufacturing

Label each process and input

Input: .its fixed and variable cost $300,000
A
$250,000 B
Process Fixed Cost Variable Cost
C
A $10,000 $5 $200,000
B $40,000 $2 none
C $70,000 $1 $150,000

$100,000

Output:
$50,000
Point of
Pairwise Comparison Indifference $0
A B 10,000 0 10000 20000 30000 40000 50000
A C 15,000 Units
B C 30,000

Graph: Choose the process with the lowest

Volume A B C cost above and below the points of
indifference. Use the graph to help
0 $10,000 $40,000 $70,000
visualize which process to choose at
10,000 $60,000 $60,000 $80,000 .what levels of demand
20,000 $110,000 $80,000 $90,000
30,000 $160,000 $100,000 $100,000
40,000 $210,000 $120,000 $110,000
50,000 $260,000 $140,000 $120,000