Calculate the break-even quantity

Assignment Help Operation Management

Reference no: EM132211208

You run a small Italian restaurant that does not yet serve pizza. In fact, your restaurant serves mainly pasta dishes and very little oven baked entrees. You have decided to convince your boss that he should be getting into the pizza business. He, however, is not quite convinced and is worried about the cost. Your research shows that a brand new pizza oven would cost about $10,000. You have calculated the cost of actually making the pizza; ingredients, labor, and the cost of utilities in actually making the pizza, at $5.00 per pizza. Your supervisor stated that he has made an agreement to buy freshly made pizzas from a larger restaurant outside of town for $6.75 each. Using the formula Q=(FC1-FC2)/(VC2-VC1), calculate the Break-even Quantity,Q, at which point the cost of purchasing pizzas would be equal to the cost of making the pizzas in-house.

Reference no: EM132211208

Questions Cloud

Perspective of consumer behaviour and utilitarian : We will be looking at the wedding industry from the perspective of consumer (purchase) behaviour, utilitarian and hedonic value.

Prompt the user to input a sequence of words : Write a program that prompts the user to input a sequence of words (separated by spaces).

Specifications-cost-effectiveness-efficiency specifications : E-business infrastructures have quality specifications and cost-effectiveness/efficiency specifications.

Call a function that returns the minimum of the two numbers : Write a program that prompts the user to enter two numbers and then calls a function that returns the minimum of the two numbers.

Calculate the break-even quantity : calculate the Break-even Quantity,Q, at which point the cost of purchasing pizzas would be equal to the cost of making the pizzas in-house.

What are different pieces of information that could change : What is the total daily cost? Which option is the best economically? What are two different pieces of information that could change, or might be too simplistic.

Write a program that prompts the user to enter an integer : Write a program that prompts the user to enter an integer and checks whether the number is divisible by both 5 and 6.

Is social anxiety advertising generally effective : Does sex sell in advertising ? Explain. Is social anxiety advertising generally effective? Explain

Write a program in python that converts unsigned binary : Write a program in Python that converts unsigned binary to hexadecimal and hexadecimal to unsigned binary.

User Account

All Pages