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

After working for 30 years, In the table given below the Distribution Manag...

In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what woul

Explain what are the four steps in the basic approach, What are the four st...

What are the four steps in the basic approach to process design that some companies use

Explain critical path consists of only five activities, You are working on ...

You are working on a project that has 12 activities. You determine that the critical path consists of only five activities. You then compute the variances for the five critical pat

Ethical decision making, Mary is 86 years old and resides in a nursing home...

Mary is 86 years old and resides in a nursing home.  She is alert but forgetful, and unsteady on her feet.  She has a history of falls and the nurses are becoming increasingly conc

Explain kudler fine food''s marketing strategy and tactics, Resources: Univ...

Resources: University Library, Kudler Fine Foods Virtual Organization Use the Virtual Organization link on the student website to access additional company information on Kudler

Explain what are the key competencies, What are the key factors that define...

What are the key factors that define success in the search industry? What are the key competencies, capabilities, and resources of successful search engine companies?

Explain what is the total cost of this policy, Rocky Mountain Tire Center s...

Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. Th

Capacity planning, outsourcing as external source of capacity

outsourcing as external source of capacity

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