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

Responsiveness - customer satisfaction and service quality, Responsiveness ...

Responsiveness - Customer Satisfaction and Service Quality Concerns the willingness or readiness of employees to provide service. It involves timeliness of service: mailing a

Economic advantage of statistical process control, Economic Advantage of St...

Economic Advantage of Statistical Process Control Since only samples of the output are measured, the cost of the measurement is substantially less than if all of the output we

Give an example of what team performance, Provide an example of what team p...

Provide an example of what team performance readiness might look like at various readiness levels

Calculating idle time and itilization, How do I calculate idle time and uti...

How do I calculate idle time and utilization in a two=stage processing problem?

Explain project management is a strategic necessity, Project Management is ...

Project Management is a strategic necessity for the success of any business. Based on the reading in the chapters what do you think are the 5 most critical points in delivering suc

Answer, A paper mill produces two grades of paper viz., X and Y. Because of...

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

Explain interest and estimate its usefulness to the project, Office Suite p...

Office Suite programs identify the resource that caught your interest and estimate its usefulness to the project management profession.

Explain management efforts and employee involvement, The decline in union m...

The decline in union membership has been mainly attributed to what four factors? Answer (1) Change in economy, employee involvement, human resources practices, and government regul

What are the classified different stock items, What are the classified diff...

What are the classified different stock items? The ABC system of inventory management Various stock items are classified as like: a. High value (A) b. Medium value (B

Explain a popular concept in healthcare administration, A popular concept i...

A popular concept in healthcare administration these days is the service line. Let us put you in the CFO position for this question. For your own hospital, are you in favor of serv

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