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

What are the types of the workforce flexibility, What are the types of the ...

What are the types of the workforce flexibility? Types of workforce flexibility: a. Functional flexibility (task flexibility or multi-skilled employees) b. Financial f

Decision tree, #questionSpencerville Products is expanding its operations w...

#questionSpencerville Products is expanding its operations west of the Mississippi. Its first step is to build a manufacturing facility in Denver to satisfy demand on the West Coa

Comparison of market based and resource-based approach, Comparison of Marke...

Comparison of Market Based and Resource-Based Approach to Operations Strategy Since Porter's assertions, there has been a recognition that traditional strategic management has

Explain job evaluation, Explain Job Evaluation. A combination of short ...

Explain Job Evaluation. A combination of short statements which describe both the necessary requirements of the particular job and the work to be performed is termed as Job Eva

Explain judges selected based on the courts system, What are six ways judge...

What are six ways judges selected based on the courts system?

Explain corporate structure in relation to its strategy, Which company do y...

Which company do you know of that successfully has been able to successfully or not manage its corporate structure in relation to its strategy? Explain you're rational. Cite all yo

Define what is the time between orders, Hottenstein, Griffith, and Hult, at...

Hottenstein, Griffith, and Hult, attorneys at law, do a great deal of printing. The firm uses a single type of printer with annual demand for print cartridges of 480 per year. The

Describe the role of ethics and social responsibility, Explain the role of ...

Explain the role of ethics and social responsibility in developing a strategic plan, considering stakeholder needs. Explain how your ethical perspective has evolved throughout t

Explain low customer contact and are capital intensive, What are companies ...

What are companies that have low customer contact and are capital intensive; yet provide a service, called?

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