An increase in automation in a production process would lower the break-even quantity needed due to reduced variable costs from less labor. A memo to a production supervisor explained that sometimes scheduling below full capacity allows for flexibility and prevents overproduction when demand is uncertain, ensuring personnel and equipment are used efficiently overall.

1. 1. Write a short memo to your boss, Al Thomas, outlining the general impact on break-
even quantities of an increase in the proportion of automation in a process.
2. Write a one-page memo to Don Jones, a production supervisor. Don has questioned
your practice of sometimes scheduling production that is below capacity, resulting in less
than full utilization of personnel and equipment.
Chapter 5Chapter 5
Memo Writing ExercisesMemo Writing Exercises