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

Offer a list one of the seven management tools, List one of the seven manag...

List one of the seven management tools and discuss how they might be used in developing a new product.

Production control function, Production control Function 1. Dispatchi...

Production control Function 1. Dispatching : Dispatching may be  defined as setting  production activities in motion through  the  release  of orders ( work order shop order)

Explain evaluating the personal requests of employees, 1. do managers like ...

1. do managers like janis blancero face a more complication when evaluating the personal requests of employees versus evaluating employee's individual work performance ? explain ?

Explain planning is the fundamental management function, 1. Planning is the...

1. Planning is the fundamental management function. Discuss how organizing and planning are related. 2. Using two examples, describe the different approaches used by companies/m

QUALITY TIPS, QUALITY TPIS ON EFFECTIVE PLANNINGuestion #Minimum 100 words ...

QUALITY TPIS ON EFFECTIVE PLANNINGuestion #Minimum 100 words accepted#

Calculate the two missing amounts, A company is considering whether to repl...

A company is considering whether to replace a machine. The old machine costs $90,000 and is being depreciated at 10% per annum using the straight line method. It is written down va

Explain management''s responsibility regarding risk, There is a puzzle in r...

There is a puzzle in regard to risk. What is management's responsibility regarding risk? At what level(s) does each aspect of risk management lie?

Business management, Six Operators are to be assigned to five jobs with the...

Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given 10 marks in the matrix below. Determine the optimal assignment. Which operator will have no a

Explain what is the role of participation in goal setting, What is the role...

What is the role of participation in goal setting? Answer Participation is positively correlated with performance Participation provides more goal clarity Participation

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