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 productivity in terms of management, Explain Productivity in terms ...

Explain Productivity in terms of management. Productivity may be defined as the ratio in between output and input. Output implies the amount produced or the no. of items prod

LP, A PAPER MILL PRODUCES TWO GRADES OF PAPER VIZ., X AND Y. BECAUSE OF RAW...

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

External factors - factor affecting productivity improvement, External Fact...

External Factors - Factors Affecting Productivity Improvement As was previously stated, the organisation has no direct control over external factors, be they government policy

Compare all partial factor and total factor productivity, Consider - a smal...

Consider - a small manufacturing company which produces high quality furniture has provided the following data: Compare all partial factor and total factor productivity for

Explain what is the consumer research, What is the consumer research behind...

What is the consumer research behind the growth of Toyota and the brand strategy they have in place? Discuss the brand strength behind Toyota. It is recommended to include the cons

MBA, Describe the various approahes to tqm

Describe the various approahes to tqm

Explain market-driven approach to meeting customer, Provide specific exampl...

Provide specific examples of ways that Pitney Bowes has aligned diversity goals with a market-driven approach to meeting customer needs.

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