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 when developing your communication strategy, Why should you conside...

Why should you consider the context of your message when developing your communication strategy? Identify four questions you should ask yourself to help you understand the context

International merketing, . Define international marketing and furnish its f...

. Define international marketing and furnish its features

Explain manufacturing sector and service sector, As a library or Internet a...

As a library or Internet assignment, find the US productivity rate (increase) last year for the (a) national economy, (b) manufacturing sector, and (c) service sector. Where can yo

Activities relating to production system designing, Activities Relating to ...

Activities Relating to Production System Designing Decision relating to the production system design is the firm and foremost activity of the production management. This activi

Make a product structure for heather, Operations Mgmt. 10th edition Hiezer/...

Operations Mgmt. 10th edition Hiezer/Render Heather Adams, production manager for a Colorado exercise equipment manufacturer, needs to schedule an order for 50 UltimaSteppers, whic

Make an aggregate plan, Prepare an aggregate plan for the coming year assum...

Prepare an aggregate plan for the coming year assuming that the sales forecast is perfect Use a spreadsheet Bradford Manufacturing in the spreadsheet an area has been designated fo

Why a small business owner consider the demographics, Why should the small ...

Why should the small business owner consider the demographics of an area when choosing a location for opening a new business? Name some sources of demographic information that are

Explain why is forecasting important for an organization, Why is forecastin...

Why is forecasting important for an organization? Which company do you believe to be successful at forecasting and why?

Explain a principle within a health care organization, What is a principle ...

What is a principle within a health care organization?

Explain what can they do to prevent cost overruns, Why do you think it's di...

Why do you think it's difficult to understand some of the basic cost terms in this chapter? Why aren't many technical people interested in cost-related subjects? What could be done

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