Explain crossover point among the existing process, Operation Management

Assignment Help:

The local convenience store makes personal pan pizzas. Currently, their process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and a variable cost of $2.00 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 at home. This alternate process has a fixed cost of $24,000, but a lower variable cost (because much less energy is used in baking) of $1.50 per pizza.

a. What is the crossover point between the existing process and the proposed process?

b. If the owner expects to sell 9,000 pizzas, should he get the new oven?


Related Discussions:- Explain crossover point among the existing process

500, find the optimal location for kilroy"s distribution center in this exp...

find the optimal location for kilroy"s distribution center in this expanded version of the problem

Thoroughly explain two major threats united airlines, Thoroughly describe t...

Thoroughly describe two major threats united airlines is facing

LP, A PAPER MILL PRODUCES TWO GRADES OF PAPER VIZ., X AND Y. BECAUSE OF RAW...

A PAPER MILL PRODUCES TWO GRADES OF PAPER VIZ., X AND Y. BECAUSE OF RAW MATERIAL RESTRICTIONS, IT CANNOT PRODUCE MORE THAN 400 TONS OF GRADE X PAPER AND 300 TONS OF GRADE Y PAPER I

Organizational goals, outline major benefits of organizational goals and d...

outline major benefits of organizational goals and describe the situation in which have observe the benefiys

What is network program rating, Nielsen ratings are very important to both ...

Nielsen ratings are very important to both advertisers and television programmers because the cost of television advertising time is based on this rating. A show's rating is the nu

Explain advantage of favourable conditions, With your instructors help iden...

With your instructors help identify a local firm that has enjoyed great growth in recent years to what degree and in what ways do you think this from success resulted from taking a

Explain managers and supervisors need to have knowledge, Why do all manager...

Why do all managers and supervisors need to have knowledge and skills related to Human Resource management?

Explain negotiable instrument, Nan read the note that Tom had just given he...

Nan read the note that Tom had just given her. She was doing some home repair for Tom. The note represented the $10,000 that Nan and Tom agreed upon for all of the work. The note r

Definitions of productivity, Definitions of Productivity 1. Pro...

Definitions of Productivity 1. Productivity is the relationship between output generated by a production or service system and the input provided to create the output.

Write Your Message!

Captcha
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