California gardens inc prewashes shreds and distributes a, Ask an Expert

Management Studies

California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $85,000 per month and a variable cost of $1.25 per bag. Clunker has a fixed cost of only $44,000 per month, but a variable cost of $1.75. Selling price is $2.50 per bag.

a) What is the crossover point in units (point of indifference) for Eric Limon/ Shutter stock the processes?

b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 60,000 bags per month?

c) What is the monthly profit or loss if the company stays with Clunker and sells 60,000 bags per month?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92010933

Have any Question?Write your Review or question?

Related Questions in Operation Management

Liability for independent contractors and agents is a

Liability for independent contractors and Agents: Is a principal liable for the torts of or for damages caused by their agent? Yes. But you must first establish that there is indeed a relationship. If you cannot find an ...

Question what kind of strategy do you recommend if

Question : What kind of strategy do you recommend if Yogurtland continues its international expansion? Would you recommend product standardization or localization? Which overall strategy would you recommend-transnational ...

Select one of the 5 major areas of Select one of the 5 major areas of business:

Select one of the 5 major areas of business: Accounting Finance Marketing Management Economics Once selected, elaborated on the importance of the selected area to general business. Reflect on what you have learned in the ...

Al long ford sells katrina age 16 a ford escape under a

Al Long Ford sells Katrina, age 16, a Ford Escape under a contract that states Katrina will pay Ford $800 per month for the next 36 months. The contract has a clause explaining that if Katrina decides to return the car t ...

Calls arrive at lynn ann fishs hotel switchboard at a rate

Calls arrive at Lynn Ann? Fish's hotel switchboard at a rate of 2.52.5 per minute. The average time to handle each is 1010 seconds. There is only one switchboard operator at the current time. The Poisson and negative exp ...

Can you please answer the following questions i will like

Can you please answer the following questions. I will like to have 20% or less of Plagiarism. 1. Discuss Nelson Mandela as a servant leader prior to his imprisonment in 1962 in accordance with Greenleaf's definition of s ...

1 based on the writings of the early scholars and reformers

1. Based on the writings of the early scholars and reformers and from general experience or research, do you feel that politics and administration can/should be truly separated in government? Why or why not? 2. Privatiza ...

1 discuss the precautions you might take as manager of a

1. Discuss the precautions you might take as manager of a new project in building a project team to assure that the project does not get off “on the wrong foot.” 2. Describe what types of products or services each of the ...

1 as industries become global in scope competitors and

1. As industries become global in scope, competitors and potential future competitors exist in not only their home market, but other national markets. This is one motive for companies to: a. focus on its home market excl ...

1 identify an industry that you would like to learn more

1. Identify an industry that you would like to learn more about. What is a potential major change/trend in one of the categories in the general environment that you think will impact the industry significantly going forw ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert