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

Explain what should they do in the internal organization, Disney entered Eu...

Disney entered Europe with several incorrect assumptions and poor research. Identify the problems that arose and how Disney should adjust for the immediate situation and what shoul

Explain how can healthcare service providers avoid claims, Part I: Avoid cl...

Part I: Avoid claims rejections A payer may delay or deny payment because of inaccurate or missing information in a submitted claim. Many contracts require payment within a spec

What is performance measures, Last year, the manager of the service departm...

Last year, the manager of the service department at East Woods Ford instituted a customer opinion program to find out how to improve service. One week after service on a vehicle wa

Explain penultimate law of the land, A constitution is best described as: A...

A constitution is best described as: Answer the statutory law of the land the fundamental law of the land the supplementary law of the land the penultimate law of the land the acce

Financial executives helped by hr department, How might an HR department he...

How might an HR department help to develop financial executives who are ethical leaders and mentors?

Financial risk, the importance of the measurtement of market risk for finan...

the importance of the measurtement of market risk for financial institution

Explain and identify the appropriate tools and techniques, Identify and dis...

Identify and discuss the four basic phases of the Phased Project Planning process. Explain how you will apply the innovative process to change your selected organization. Ide

Explain intangible services are perishable services, Which of the following...

Which of the following is not a characteristic that distinguishes services from goods? Service jobs are unskilled A service is intangible Services are perishable Services are heter

Explain what entry mode would you use, You are the Vice-President for Inter...

You are the Vice-President for International Development of a small U.S. pharmaceutical company (located in Emeryville, California) which specializes in the development of new medi

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