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

Are service operation different from manufacturing operation, Q: Are servic...

Q: Are service operations different from manufacturing operations?  Ans: The immediate answer is yes. However, if we categorise operating systems by one of the variables mention

Process design of operations in an organization, 1.  Investigate: Consider ...

1.  Investigate: Consider the operations of your own organisation (or another with which you are familiar) and report on how its operational processes are designed. From your readi

Explain both or either of burglary and felony murder, Doug enters Jane%u201...

Doug enters Jane%u2019s residence through an unlocked window that he lifts open at midnight, intending to steal her first edition copy of Sense & Sensibility, which he knows was re

Types of process technologies - job production, Types of Process Technologi...

Types of Process Technologies - Job Production Job one off or make complete are description given to the organization whereby the complete task is handled by a single worker o

Uniform plant loading - just in time, Uniform Plant Loading - Just In Time ...

Uniform Plant Loading - Just In Time To use the JIT concept, it is essential that production flows as smoothly as possible. To maintain uniform flow, Japanese companies have s

Explain one other element you feel is important to take, We know that all p...

We know that all perceptions are subjective and there is not necessarily a best way to understand any given situation. So, if there are so many moving parts to perception, how do y

Explain terms of developing a project plan, In terms of developing a projec...

In terms of developing a project plan, specifically recommend how this resource could expedite that process.

Explain industrial relations, Explain Industrial Relations. Industrial...

Explain Industrial Relations. Industrial Relations: it is that aspect of management that deals with the manpower of the enterprises where machine operators, skilled managers

Explain effective applications, "Effective Applications" Please respond to ...

"Effective Applications" Please respond to the following: •Discuss the types of organizational culture changes (especially within the medical staff) that will have to take place in

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