Mathematics, 30.03.2021 05:50 mia3128
Quality Metalcraft is a company in Michigan that makes prototype parts for GM and Ford. The QMC
manager is putting together a Request for Proposal (RFP).
A) You have been asked by this manager to determine the
break-even price for 4 runs (400 units--each
run is 100 parts). What is it?
B) If GM likes the parts, they may extend the contract by 2 more runs. What is the break-even point for
running both the 5th and 6th runs together?
Quantity Marginal Cost per run Total Cost Average Cost per run
$64
$64 $64
2 runs $58
$122 $61
3 runs $52
$174 $58
4 runs $46
$220 $55
5 runs
$40
$260 $52
6 runs
$34
$294 $49
1 run
Answers: 3
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Quality Metalcraft is a company in Michigan that makes prototype parts for GM and Ford. The QMC
man...
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