Crossover point between existing process-proposed process

Assignment Help Operation Management

Reference no: EM131732076

The local food mart makes pizzas in their premed food section. Currently, its process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and a variable cost of $1.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked (as before), or partially cooked and then flash frozen for the customer to finish heating at home. This alternate process has a fixed cost of $24,000, but a lower variable cost of $1.45 per pizza. What is the crossover point between the existing process and the proposed process (report in number of pizzas to the nearest whole number)?

Reference no: EM131732076

Questions Cloud

Stakeholders in vogue decision to run the flattering profile : Who were the stakeholders in Vogue’s decision to run the flattering profile?

Explain the stakeholders in the farmers market movement : Explain the stakeholders in the farmers’ market movement and discuss the risks associated with this sustainability movement.

What is the upper control limit : You are making a 3-sigma control chart at your new job for sample sizes of 16. What is the upper control limit

Protect the sensitive devices from drops and spills : Your company markets a line of rugged smartphone cases designed to protect the sensitive devices from drops, spills, and other common accidents.

Crossover point between existing process-proposed process : The local food mart makes pizzas in their premed food section. What is the crossover point between the existing process and the proposed process.

Characteristics should good performance incentives have : Who should be eligible for incentive awards? What other characteristics should good performance incentives have?

Getting the data is the hardest part of analytics : Why does everyone state that getting the data is the hardest part of analytics? What part of Authoring reports would you consider to be the hardest and why?

Money is the key motivator : Money is the key motivator. All of the following are public not for profit organizations except:

Technological transformation called knowledge revolution : How does Baase’s point align with the assertion in the lesson that we are now living in third great technological transformation called the knowledge revolution

User Account

All Pages