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The local food mart makes pizzas in their premed food section. Currently, its process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and a variable cost of $1.75 per pizza. The owner is considering a different process that can make pizzas in two ways: completely cooked (as before), or partially cooked and then flash frozen for the customer to finish heating at home. This alternate process has a fixed cost of $24,000, but a lower variable cost of $1.45 per pizza. What is the crossover point between the existing process and the proposed process (report in number of pizzas to the nearest whole number)?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92540762

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