Broadening Your Perspective
BYP18-1
DECISION MAKING ACROSS THE ORGANIZATION Martinez Company has decided to introduce a new product. The new product can be manufactured
by either a capital-intensive method or a labor-intensive method. The manufacturing method will
not affect the quality of the product. The estimated manufacturing costs by the two methods are as
follows.
Capital-Intensive Labor-Intensive
Direct materials $5 per unit $5.50 per unit
Direct labor $6 per unit $8.00 per unit
Variable overhead $3 per unit $4.50 per unit
Fixed manufacturing costs $2,508,000 $1,538,000
Martinez's market research department has recommended an introductory unit sales price of $30.
The incremental selling expenses are estimated to be $502,000 annually plus $2 for each unit sold,
regardless of manufacturing method.
Instructions With the class divided into groups, answer the following.
(a) Calculate the estimated break-even point in annual unit sales of the new product if Martinez
Company uses the:
1. Capital-intensive manufacturing method.
2. Labor-intensive manufacturing method.
(b) Determine the annual unit sales volume at which Martinez Company would be indifferent
between the two manufacturing methods.
(c) Explain the circumstance under which Martinez should employ each of the two manufacturing
methods.
(CMA adapted)
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Running head: TITLE OF PAPER 1
TITLE OF PAPER 3
Case Study: Input Output Devices
Thesis: The Controller-pilot datalink communications (CPDLC) will improve the quality of flight by assisting the Air Traffic Controller (ATC) give the pilot pre-departure/departure, weather disruptions, in-flight, and descent/landing directions via text message.
I. During pre-departure or departure the ATC is able to upload instructions to the pilots and flight management systems in real time on the CPDLC.
A. With the CPDLC departures are sped up, taxi time is reduced causing less fuel burn, and increases runway capacity.
B. Communicating using a radio directly to the ATC for pre-departure and departure information takes time and could possibly result in miscommunication.
II. Weather disruptions can be a problem for pilots but while using CPDLC routes are delivered around bad weather in real time.
A. Having a real time update improves safety, provides efficient flight times as well as contribute to fuel cost saving.
B. Usually reroutes around bad weather are transmitted to pilots verbally over a radio with may be delayed by frequency congestion causing miscommunication.
III. While using the CPDLC landing clearance can be uploaded to the pilot’s flight computer.
A. Having information uploaded directly to the pilot’s flight computer provides more efficient routes, optimized profile descents, reduced flight time which reduces fuel consumption.
B. The pilots/flight crew usually enters landing clearance or runway changes into flight management computers manually and miscommunication can cause longer flights, more fuel consumed and decreased flight capacity.
IV. The CPDLC is not going to completely replace the radio communication between the ATC and pilots/flight crew but there are many advantages to using this system.
A. According to SITA (The world's leading specialist in air transport communications and information technology), “Controller Pilot Data Link Communications (CPDLC) has become mandatory across the core of European upper airspace” (p.3).
B. “By supplementing traditional voice communications with direct data links between aircraft and Air Traffic Control, CPDLC allows controllers to handle more aircraft and manage them more safely” (SITA, p.5).
References:
Introduction to CPDLC Operations. (2014, March 11). Retrieved April 8, 2015, from http://www.skybrary.aero/index.php/Introduction_to_CPDLC_Operations
Controller Pilot Data Link Communications Implications. (2015, January 1). Retrieved April 9, 2015, from http://www.sita.aero/globalassets/docs/white-papers/cpdlc-implementation-white-paper.pdf

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