Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish,vegetarian pizza. Oven type A can handle 22 pizzas an hour. The fixed costs associated with oven A are $20,000 andthe variable costs are $3.00 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associatedwith oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $12.00 each.a) The break-even point in units for oven type A = units (round your response to the nearest whole number).The break-even point in units for oven type B = units (round your response to the nearest whole number).b) If Janelle is expecting that the pizza shop is going to be able to sell 8,000 pizzas, then she should select ovenc) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select ovend) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent =pizzas (round your response to the nearest whole number).

In order to maximize profits, businesses must effectively manage their costs. One tool for analyzing…

Answered: Janelle Heinke, the owner of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

See similar textbooks

Similar questions

A biotech firm is considering abandoning its old plant, built 23 years ago, andconstructing a new facility that has 50% more square footage. The original cost of the old facility was $300,000, and its capacity in terms of standardizedproduction units is 250,000 units per year. The capacity of the new laboratoryis to be 400,000 units per year. During the past 23 years, costs of laboratoryconstruction have risen by an average of 5% per year. If the cost-capacity factor, based on square footage, is 0.80, what is the estimated cost of the newlaboratory?
Janelle Heinke, the owner of Ha'Peppas!, is consideringa new oven in which to bake the firm's signature dish, vegetarianpizza. Oven type A can handle 20 pizzas an hour. The fixedcosts associated with oven A are $20,000 and the variable costsare $2.00 per pizza. Oven B is larger and can handle 40 pizzas anhour. The fixed costs associated with oven B are $30,000 and thevariable costs areS 1.25 per pizza. The pizzas sell for S 14 each.a) What is the break-even point for each oven?b) If the owner expects to sell9,000 pizzas, which oven should shepurchase?
Please do not give solution in image format thanku Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle. Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle. Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle. a. If demand for Bob's candles is 2500, which option should he pick, and what is the cost? b. If demand for Bob's candles is 4500 which option should he pick, and what is the cost?
Tribal Systems, Inc., is opening a new plant and has yet todecide on the type of process to employ. A labor-intensiveprocess would cost $10,000 for tools and equipment and $14 for labor and materials per item produced. A more au-tomated process costs $50,000 in plant and equipment but has a labor/material cost of $8 per item produced. A fullyautomated process costs $300,000 for plant and equipmentand $2 per item produced. If process selection were basedsolely on lowest cost, for what range of production wouldeach process be chosen?
Janelle Heinke, the owners of Ha'Peppas, is consid-ering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the vari-able costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $14 each. a) What is the break-even point for each oven? b) If the owner expects to sell 9,000 pizzas, which oven should she purchase? c)If the owner expects to sell 12,000 pizzas, which oven should she purchase? d) At what volume should Janelle switch ovens?
Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.a. What is the break-even quantity beyond which the first process is more attractive?b. What is the difference in total cost if the quantity produced is 10,000?
Average and Total Costs The Accounting Club wants to have a party for its members. The costof renting space is $1,500, and the cost of refreshments will be $15 per person.Required1. What is the total cost if 100 people attend? What is the average cost?2. What is the total cost if 200 people attend? What is the average cost?3. Explain why average total cost differs with changes in total attendance.
Janelle Heinke, the owner of Ha’Peppas!, is consider-ing a new oven in which to bake the firm’s signature dish, vegetar-ian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costsare $2.00 per pizza. Oven B is larger and can handle 40 pizzas anhour. The fixed costs associated with oven B are $30,000 and thevariable costs are $1.25 per pizza. The pizzas sell for $14 each.a) What is the break-even point for each oven?b) If the owner expects to sell 9,000 pizzas, which oven should shepurchase? c) If the owner expects to sell 12,000 pizzas, which oven shouldshe purchase?d) At what volume should Janelle switch ovens?
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Either of two processes could be used for in-house production; Process A would have an annual fixed cost of $180,000 and a variable cost of $6 per unit, and Process B would have an annual fixed cost of $190,000 and a variable cost of $5 per unit. Determine the range of annual volume for which each of the alternatives would be best.
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine.Two alternatives, A and B, have been identified, and the associated costs and revenues have beenestimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unitwould be $10 for A and $11 for B; and revenue per unit would be $15.b. At what volume of output would the two alternatives yield the same profit?
Fast Burger Inc. is building a new restaurant near a college football stadium. The restaurant will be open 16 hours per day, 360 days per year. Managers have concluded that the restaurant should have the capacity to handle a peak hour demand of 120 customers. Assume front-counter service personnel can take and assemble orders at the service rate of 14 customers per hour and the target labor utilization rate for this job is 70 percent. According to the information, determine the the number of front-service counter people that should be assigned to this peak demand period. Only for non-integer results, round your answer UP to the nearest integer. For example, if your answer is 5.05, type 6; if your answer is 5, type 5. Your Answer: Answer
Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2.9-MGD tower is $153,200. The exponent in the cost-capacity equation is 0.47. The cost of a 0.75 million gallon per day induced-draft packed tower is $

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS