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 team prior to raising a follow-on fund, How should foster position ...

How should foster position herself and her team prior to raising a follow-on fund?

Explain saving lives with social media, Compare and contrast the Haiti SM d...

Compare and contrast the Haiti SM discussion with the "Saving Lives with Social Media" case. Create a table that compares and contrasts elements from each. Is an emergent strategy

Explain marketing to stakeholders and stockholders, What is the value of ma...

What is the value of marketing to the consumer, the stakeholder and stockholder and a. the value of your place on marketing b. the value of marketing to customers and consumers c.

Identify business strategy and manufacturing strategy. , Your company has ...

Your company has been invited to look at possible improvements to the manufacturing system at Fly Fishing Reels.  Your colleague has already visited the company to collect the atta

Describe what is a learning organization, What is a learning organization a...

What is a learning organization and how do you develop one

Define what would be the percentage increase in productivity, An operation ...

An operation produces 190 units per hour with a scrap rate of 10 percent. If we could eliminate the scrap completely, what would be the percentage increase in productivity per hour

Explain distinction between e-business and e-commerce, Why does the Baltzan...

Why does the Baltzan text draw a distinction between e-business and e-commerce? • The Baltzan text lists four challenges for Web-based e-business (pp. 103 - 104). See i

What helps ups to achieve its business objective, How the web site helps UP...

How the web site helps UPS to achieve its business objective?

Explain supply chain risk management tools, Of the barriers to supplier dev...

Of the barriers to supplier development mentioned in this chapter, which ones, in your opinion, are the most difficult to overcome? 2. Describe the major sources of supply base ris

Ch 6, I-mart is a discount optical shop that can fill most prescription ord...

I-mart is a discount optical shop that can fill most prescription orders in around 1 hour. The management is analyzing the processes at the store. There currently is one person ass

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