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

Define goal is to develop a strong talent management program, The goal is t...

The goal is to develop a strong talent management program globally to develop and retain talent that you have been losing to competitors. Discuss the strategies that you might use

Explain project form more common or the exponential form, Is the stretched-...

Is the stretched-S life cycle project form more common or the exponential form? What other aspects of managing a project are affected by the nature of the project form besides budg

Assignment, Analyze the strategic role of operations management in terms of...

Analyze the strategic role of operations management in terms of organizational and operational objectives.

Explain what were mcdonalds inventory turns, McDonalds Inventory $128.40Rev...

McDonalds Inventory $128.40Revenue $17, 140.50COGS $ 11943, 70Gross Profit $5,196.80 Wendy's Inventory: $54.40Revenue: 3148.90COGS: 1634.60Gross Profit: 1514.40 A. What were

Explain what factors have limited the ability of local law, 1. What factors...

1. What factors have limited the ability of local law enforcement agencies to respond to the growing threat of computer crime? Answer A. lack of training B. lack of diagnostic equi

List the five styles of leadership are situational, The five types of leade...

The five types of leadership styles are most applicable in certain situations. Discuss the applicability of each of the five types in project leadership situations and its usefulne

What is swot analysis is an evaluation of the organization, 2. SWOT analysi...

2. SWOT analysis is an evaluation of the organization's ________ strengths and weaknesses and its ________ opportunities and threats. (a) external; internal (b) internal; int

Explain justify a strategic information system, Why might it be difficult t...

Why might it be difficult to justify a strategic information system?

Dave., Henrique Correa’s bakery prepares all its cakes between 4am and 6am ...

Henrique Correa’s bakery prepares all its cakes between 4am and 6am so they will be fresh when customers arrive. Day old cakes are virtually always sold, but at a 50% discount off

Explain hides the information from the other side, Research suggests that a...

Research suggests that a party with an attractive BATNA will likely receive a more positive outcome if it hides the information from the other side.

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