Beth’s Bakery can comfortably produce 60 brownies in oneday. If Beth takes some unusual measures, such as hiring her twoaunts to help in the kitchen and work overtime, she can produceup to 100 brownies in one day.(a) What are the design and eff ective capacities for Beth’s Bakery?(b) If Beth is currently producing 64 brownies, compute thecapacity utilization for both measures. What can youconclude?

Beth’s Bakery can comfortably produce 60 brownies in oneday. If Beth takes some unusual measures, such as hiring her twoaunts to help in the kitchen and work overtime, she can produceup to 100 brownies in one day.(a) What are the design and eff ective capacities for Beth’s Bakery?(b) If Beth is currently producing 64 brownies, compute thecapacity utilization for both measures. What can youconclude?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Similar questions

A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the comingmonth from its marketing department. Fixed costs of $25,000 per month are allocated to the felttip operation, and variable costs are 37 cents per pen. b. At what price must pens be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes?
What volume (units) of output would the two alternatives yield the same profit? "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?"
A manufacturer of printed circuit boards has a designcapacity of 1000 boards per day. Th e eff ective capacity, however,is 700 boards per day. Recently, the production facility has beenproducing 950 boards per day. Compute the design and eff ectivecapacity utilization measures. What do they tell you?
2) Paige Vincent is the RM at the City Center Novotel. For over 12 months, she has been working hard to improve the performance of her hotel. Paige just received the following performance data. Help her understand the revenue optimization trends for her property by completing the chart. Then, you will be asked to evaluate her efforts. City Center Novotel Performance: Occupancy % Novotel Comp Set Index This month 57.2 58.1 Last 3 months 55.1 57.7 Last 12 months 51.3 55.6 ADR This month $266.57 $270.15 Last 3 months $244.91 $269.69 Last 12 months $231.45 $268.95 RevPAR This month Last 3 months Last 12 months
A producer of felt-tip pens has received a forecast of demand of 32000 pens for the coming month from its marketing department. Fixed costs of $36000 per month are allocated to the felt-tip operation, and variable costs are 39 cents per pen. a. Find the break-even quantity if pens sell at $3 each. b. At what price must pens be sold to obtain a monthly profit of $19,000, assuming that estimated demand materializes?
Easy-Tech Soft ware Corporation is evaluating theproduction of a new soft ware product to compete with thepopular word processing soft ware currently available. Annualfi xed costs of producing the item are estimated at $150,000, andthe variable cost is $10 per unit. Th e current selling price of theitem is $35 per unit, and the annual sales volume is estimated at50,000 units.(a) Easy-Tech is considering adding new equipment thatwould improve soft ware quality. Th e negative aspect ofthis new equipment would be an increase in both fi xedand variable costs. Annual fi xed costs would increase by$50,000 and variable costs by $3. However, marketingexpects the better-quality product to increase demandto 70,000 units. Should Easy-Tech purchase this newequipment and keep the price of their product the same?Explain your reasoning.(b) Another option being considered by Easy-Tech is theincrease in the selling price to $40 per unit to off set theadditional equipment costs. However, this increase…
A producer of felt-tip pens has received a forecast of demand of 31,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 40 cents per pen. a. Find the break-even quantity if pens sell for $2 each. (Round your answer to the next whole number.)
A small language school has a class offering capacity of 80 students per day. Its effective capacity, however, is 64 students per day, and its actual output is 62 students per day. The operational manager would like to increase the number of students per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.A small language school has a class offering capacity of 80 students per day. Its effective capacity, however, is 64 students per day, and its actual output is 62 students per day. The operational manager would like to increase the number of students per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.
A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to the felttip operation, and variable costs are 37 cents per pen.a. Find the break-even quantity if pens sell for $1 each.b. At what price must pens be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes?
ABC Insurance Ltd. wants to evaluate its labor and multifactor productivity with a new computerized title-search system. The company has a staff of four, each working 8 hours per day (for a payroll cost of $630/day) and overhead expenses of $450 per day. Collins processes and closes on 7 titles each day. The new computerized title-search system will allow the processing of 13 titles per day. Although the staff, their work hours, and pay are the same, the overhead expenses are now $900 per day. Calculatea) single factor productivity with old systemb) multi factor productivity with old systemc) ) single factor productivity with new systemd) multi factor productivity with new system
Using the data in "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?a) What is the brea k-even point in dollars for proposal A if youadd $10,000 installation to the fixed cost?b) What is the break-even point in dollars for proposal B if youadd S l 0,000 installation to the fixed cost?
#3 - At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $400 per unit and it takes place in a facility that has a monthly fixed cost of $200,000. a. If Freeze Inc. sells each unit at $1,200 how many units do they need to sell every month to break-even? b. What is the monthly revenue at the break-even point? с. What is the monthly variable cost at the break-even point? d. What is the total operating cost at the break-even point? e. If Freeze Inc. sells 1,000 units at $1,000 each on a given month, calculate the profit. acer