Explain what is the breakeven point for each oven, Operation Management

Assignment Help:

The owner of a pizza place is considering a new oven in which to bake the pizzas. Oven type A can handle 25 pizzas per hour. The fixed costs associated with oven A are $10,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas per hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.50 per pizza. The pizzas sell for $14.00 each.

a) What is the breakeven point for each oven?

b) If the owner expects to sell 20,000 pizzas, which oven should she purchase?

c) If the owner expects to sell 6,000 pizzas, which oven should she purchase?

d) At what volume should Janelle switch ovens?


Related Discussions:- Explain what is the breakeven point for each oven

Explain the local publix grocery has five regular lanes, The local Publix G...

The local Publix Grocery has five regular lanes and one express lane (12 items or less only). Based on a sampling study, it takes 11 minutes on the average for a customer to go thr

Define company pay structure is fair to women and minorities, You have been...

You have been asked to evaluate whether a companys pay structure is fair to women and minorities. How would you go about answering this question? What factors might you consider in

Gantt load chart, Gantt Load Chart The Gantt charts were developed by...

Gantt Load Chart The Gantt charts were developed by Henry L. Gantt about a century ago. Their purpose is to provided an immediate comparison between schedule an reality ( i,

Explain non-web-based international expansion strategies, Why is it that sm...

Why is it that small businesses are at a disadvantage as they pursue non-Web-based international expansion strategies?

Explain what is the current capacity-number of orders, Identify the process...

Identify the process strategy you will utilize at CPC and explain why this strategy is appropriate for your business. Create a process flow chart for CPC. Identify opportunities to

Combination layout, discuss the concept of a combination layout

discuss the concept of a combination layout

Customisation - service process matrix, Customisation - Service Process Mat...

Customisation - Service Process Matrix Customisation reflects the degree to which the service provided is tailored to the needs of the customer. Organisations which have a hig

Explain job design be used to create a motivated workforce, How can job des...

How can job design be used to create a more motivated workforce? Be specific.

Difference between, Give difference between assembler, compiler and interpr...

Give difference between assembler, compiler and interpreter

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