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Question: (a) If an average worker could be identified, what advantage would there be in using that person for a time study? What are some reason why an average worker might not be studied.
(b)A manager has the option of purchasing one, two or three machines. Fixed costs and potential volumes are as follows:
Variable cost is Rs. 100 per unit, and revenue is Rs. 400 per unit
(i)Determine the break-even point for each range.
(ii)If projected annual demand is between 580 and 660 units, how many machines should the manager purchase?
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