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 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable 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 $14.00 each. a) The break-even point in units for oven type A = 1667 units (round your response to the nearest whole number). The break-even point in units for oven type B = 2353 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 9,000 pizzas, then she should select oven B A A or B (Equal Profit)
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- 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?Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $147,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $2,970 per year in additional revenue, with variable costs estimated at $970 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 190 patients annually. How many patients would have to be added for the new process to break even? patients. (Enter your response rounded to the nearest whole number.) The break-even volume isJanelle 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?
- 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?You are the operations manager for Louisiana Oysters, Inc. The company has designed new "Oyster shucking" knife that is expected to reduce risk of injury to the user. Your firm plans to begin production of these knives soon. Either of two machines, A or B could be used for in-house production. Machine A would have a fixed cost of $6000 and a variable cost of $5 per knife produced, and machine B would have a fixed cost of $9600 but a variable cost of $3 per knife. Each knife is expected to sell for $15. Determine the Range of annual “Volume of Business“[Q], for which each of the two alternative machines would be optimal i.e. best. Hint: Compute various break-even points for your evaluationDr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $149,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $3,040 per year in additional revenue, with variable costs estimated at $1,030 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 205 patients annually. How many patients would have to be added for the new process to break even? Part 2 The break-even volume is enter your response here patients. (Enter your response rounded to the nearest whole number.)
- Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $2,980 per year in additional revenue, with variable costs estimated at $1,030 per patient. The two new chairs will allow Dr. Gulakowicz to expand her practice by as many as 215 patients annually. How many patients would have to be added for the new process to break even? (Enter your response rounded to the nearest whole number.)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?Samantha’s Group of Companies is deciding if it should design an advertising system for use on its website. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $25,000 under good conditions or -$15,000 under bad conditions. The final choice is System B, which would increase sales -$5,000 under both good and bad conditions. Note that it costs $25,000 to develop a system. Assume that good conditions are TWICE as likely as the bad conditions. (Hint: twice as likely means a ratio of 2:1). Outline the ultimate objective for the use of decision trees in product design. How is this objective accomplished? Draw the appropriate decision tree for the above problem.
- Samantha’s Group of Companies is deciding if it should design an advertising system for use on its website. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $25,000 under good conditions or -$15,000 under bad conditions. The final choice is System B, which would increase sales -$5,000 under both good and bad conditions. Note that it costs $25,000 to develop a system. Assume that good conditions are TWICE as likely as the bad conditions. (Hint: twice as likely means a ratio of 2:1). Calculate expected monetary values for all courses of action and which option should the company pursue? Justify your response.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: AnswerPlease 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?