What is the break-even quantity-dot restaurant

Assignment Help Operation Management
Reference no: EM132804823

Dot's Restaurant must decide between two technology processes in their kitchen. They only serve dinner after 4 p.m. on a small island called Sanibel. The restaurant is open 250 days per year. Dot and her husband, Ham, are retired. They became bored playing golf five times a week and decided to open this boutique restaurant. Process A uses an induction oven and microwave process with a fixed cost of $44,000 and a variable cost of $4.19 per meal. Process B uses a gas fired oven process with heating lamps with a fixed cost of $28,000 and a variable cost of $5.86 per meal. Process A speeds up cooking and delivery time. The average selling price per meal is $31.38.

-What is the break-even quantity?

-If the restaurant manager expects to sell 10,000 meals, which option, A or B, is best? Justify.

-Is the restaurant profitable if they purchase the process option you recommend in part (b)?

Reference no: EM132804823

Questions Cloud

Entrepreneurship and Innovation Essay - Case Study : Identify processes followed by the entrepreneur that may have contributed to being a successful entrepreneur - What was the opportunity the entrepreneur saw
What are the pretax combined cash flows : The Astro World amusement park has the opportunity to expand its size now? (the end of year? 0) by purchasing adjacent property for ?$275,000
What are the various facility layouts : What are the various facility layouts used today in manufacturing and service operations? What are some of the characteristics of a good layout?
Explain yield management and revenue management : What is the difference between yield management and revenue management for service based organizations?
What is the break-even quantity-dot restaurant : Dot's Restaurant must decide between two technology processes in their kitchen. They only serve dinner after 4 p.m. on a small island called Sanibel.
Should abc bank go short or long on the futures contracts : Should ABC bank go short or long on the futures contracts to establish the correct macrohedge for its interest rate risk? Explain why?
Analyzing quality for an organization : Analyzing Quality for an Organization Could you please provide a description of the Company's (Ford Motor Company) performance based on the seven categories ag
Importance of integrating sales and operations : Looking at the importance of integrating sales and operations. This idea of integrated management is indeed a key tenet of supply chain and operations managemen
Compute the number of small casings : Morrison Manufacturing produces casings, Compute the number of small casings that should be produced per setup to minimize total setup and carrying costs.

Reviews

Write a Review

Operation Management Questions & Answers

  Development test and evaluation process

Define and explain the Development Test and Evaluation process? Why is this important for an acquisition?

  Rank order discretionary benefits

Assume you make such choices. Rank order discretionary benefits, starting with the ones you would most likely drop to the ones you would least likely drop

  Meeting the special needs of homeless older adults

Specify the difficulties faced by health care professionals in meeting the special needs of homeless older adults.

  China is dumping excess steel production on world markets

Does the evidence suggest to you that China is dumping excess steel production on world markets?

  Sustainability challenges in the gas and oil industry

Sustainability Challenges in the Gas and Oil Industry found within Part 5 of your textbook.

  Design sales presentation/campaign that introduces idea

Select a product that you like or a product you use. Design a sales presentation/campaign that introduces an idea for the product, or a better way to promote the product. This section should be a minimum of two pages and include the six suggestions p..

  What are strategic alliances

What are strategic alliances? What types of strategic alliances are there for MNC executives to consider? What is a joint venture?

  Outsourcing impacted inventory management

How has outsourcing impacted inventory management at OEM manufacturers? Are direct shipments a good practice to save lead-time? (Direct shipments refers to a supplier shipping product to another supplier for processing, instead of the OEM manufacture..

  Elucidate what is the probability of normal distribution

Elucidate what is the probability which a random number from the triangular distribution is less than 400. Elucidate what is this probability for the normal distribution.

  Explain the organization and purpose of chaebols

Explain the organization and purpose of chaebols. Identify the characteristics of LGE’s human resources strategy.

  What are the steps to conduct a hypothesis test

What are the steps to conduct a hypothesis test? How does a researcher determine which statistical test to conduct? How does a researcher determine which level of significance to use? What software programs can be used to compute these tests? Where i..

  How organizational behavior can aid you in decision-making

Explain the connection between organizational behavior and your selected job skills from the matrix.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd