A business level strategy primarily details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.
Answer:
4.00
Explanation:
Given:
Upper Specification Limit, USL = 27
Lower Specification Limit, LSL = 21
Mean = 22
Standard deviation,
= 0.25
Required:
Find the process capability index
First center the mean by taking the average of the LSL and USL.



Use formula below to find process capability index:
![C_p_i = min [(\frac{USL - X}{3*\sigma}), (\frac{X - LSL}{3*\sigma})]](https://tex.z-dn.net/?f=%20C_p_i%20%3D%20min%20%5B%28%5Cfrac%7BUSL%20-%20X%7D%7B3%2A%5Csigma%7D%29%2C%20%28%5Cfrac%7BX%20-%20LSL%7D%7B3%2A%5Csigma%7D%29%5D%20)
![C_p_i = min [(\frac{27 - 24}{3*0.25}), (\frac{24 - 21}{3*0.25})]](https://tex.z-dn.net/?f=%20C_p_i%20%3D%20min%20%5B%28%5Cfrac%7B27%20-%2024%7D%7B3%2A0.25%7D%29%2C%20%28%5Cfrac%7B24%20-%2021%7D%7B3%2A0.25%7D%29%5D%20)
![= min [(\frac{3}{0.75}), (\frac{3}{0.75})]](https://tex.z-dn.net/?f=%20%3D%20min%20%5B%28%5Cfrac%7B3%7D%7B0.75%7D%29%2C%20%28%5Cfrac%7B3%7D%7B0.75%7D%29%5D%20)
![min [ (4.00), (4.00)]](https://tex.z-dn.net/?f=%20min%20%5B%20%284.00%29%2C%20%284.00%29%5D%20)
We are sullosed to take the minimum value, but since both values are equal, our process capability index will be 4.00
Therefore, the process capability index = 4.00
Answer:
$7.8
Explanation:
Variable costs = $504,000
Fixed costs = $392,000
Number of units produced = 84,000
Shipping charges = $4,500
Therefore, the variable cost per unit is calculated as follows:
= Variable costs ÷ Number of units produced
= $504,000 ÷ 84,000
= $6 per unit
Incremental fixed cost per unit (For 2,500):
= Shipping cost ÷ 2,500
= $4,500 ÷ 2,500
= $1.8 per unit
Therefore, the unit sales price will be the sum total of variable cost per unit and incremental fixed cost per unit for the shipping charges.
BEP (in sales price per unit):
= Variable cost per unit + incremental fixed cost per unit
= $6 + $1.8
= $7.8
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