Sells delicious navajo tacos in the crossroads food court

Assignment Help Operation Management

Reference no: EM132273206

Four Corners is an IBC company that sells delicious Navajo tacos in the Crossroads Food Court. Part of their success can be attributed to the freshly fried Indian bread that is used not only for the tacos, but also for dessert items. As demand grows the fry-bread process is becoming a bottleneck. Operations management for the company is looking at two different process options to replace the highly manual process currently being used. Option 1 (medium automation) would cost $200 to implement whereas Option 2 (high automation) would cost $375. With Option 1 the variable cost per fry bread produced would be $0.19. The variable cost for Option 2 would be $0.13 per fry bread.

A. At what volume (demand) of fry breads is the cost for the two options the same? (Display your answer to two decimal places.)

B. What is the total cost for either option at this break-even volume (answered in the last question)? (Display your answer to two decimal places.)

Reference no: EM132273206

Questions Cloud

Introduce laws calling for continued use of certain mascots : What factors make elected officials introduce laws calling for continued use of certain mascots

Job description at start of employment impact : How did the lack of the knowledge provided by a job description at the start of employment impact you as the employee moving forward on the job?

Role assumptions play in the decision-making process : Discuss the role assumptions play in the decision-making process, and explain where information for developing assumptions originates.

Role of innovation in the strategic management process : Discuss the role of innovation in the strategic management process.

Sells delicious navajo tacos in the crossroads food court : Four Corners is an IBC company that sells delicious Navajo tacos in the Crossroads Food Court.

Identify an innovation in lululemon athletica : Identify an innovation in Lululemon Athletica, and argue why it is an innovation and not just a revision.

Process of crafting and executing costco strategy : Do you think Jim Sinegal was an effective CEO? What grades would you give him in leading the process of crafting and executing Costco’s strategy?

Just-in-time production implies : Just-in-Time production implies: That products will be pulled through the operations system to meet customer demand.

The supply chain side of many organization : Explain why ERP plays a very important role in the supply chain side of many organization such as SAP, Oracle, PeopleSoft, and JD Edwards.

User Account

All Pages