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 best leverage the federal registers website, Analyze the ways in wh...

Analyze the ways in which managers could use the Federal Register to determine the single most significant challenge associated with its use, and how managers could address that ch

Explain one attribute or capacity of servant leadership, Write a 500-750-wo...

Write a 500-750-word paper analyzing emerging leadership theories. Address the following questions and concepts 1) Describe one attribute or capacity of servant leadership an

Patient management, i want to no how they management patient were to start...

i want to no how they management patient were to start up to the end

Do you think taylor''s position is similler applicable today, 1. Do you thi...

1. Do you think Taylor's position is equally applicable today? 2. Looking at Taylor's and Grayson's remarks, whick were made approximately 73 years apart, one has to wonder what

Travael chart, I want some project about travel chart.

I want some project about travel chart.

Define challenges has the european union consortium faces, Describe what ch...

Describe what challenges has the European Union Consortium faced in the last 2-3 years

Decision making process for ethical solution, Profits have been decreasing ...

Profits have been decreasing and power plant executives are considering whether to use a production process that decreases costs (and therefore increases profits) but adds to the p

Explain manufacturers consider themselves service providers, In what way ca...

In what way can contract manufacturers consider themselves service providers? Hasn't Nike been doing this for years? What's the difference?

Inventory, What is ABC analysis in inventory control? Discuss its advantage...

What is ABC analysis in inventory control? Discuss its advantages/disadvantages

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