Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

The owner of backstreet’s Italian restaurant are considering starting a delivery service for pizza and their are other Italian dishes in the small college town where they are located. They can purchase a used delivery van and have it painted with their name and logo for $21,500. They can hire part-time drivers who work in the evenings from 5 PM to 10 PM for eight dollars per hour. The drivers are mostly college students who study at the restaurant when they are not making deliveries. During the day, there are so few deliveries that the regular employees can handle them. The owners estimate that the van will last 5 years(365 days per year) before it has to be replaced and that each delivery will cost about one dollar and $1.35 in gas and other maintenance costs (including tires, oil, scheduled service etc). They also estimate that on average each delivery order will cost $15 for direct labor and ingredients to prepare and package, and will generate $34 in revenue.

How many delivery orders must backstreets make each month in order for the service to break even?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91701031

Have any Question?


Related Questions in Operation Management

Two footballers considering of taking steroids one

Two footballers considering of taking steroids. One footballer decides to take it, he will be better compared to other making it obvious but steroids can be detected. Make a game, identify players, payoffs and choices al ...

1 which of the following is false about quality function

1. Which of the following is FALSE about Quality Function Deployment (QFD)? - Personal Because of their shape, the tables are often referred to as “houses of quality” Technical requirements are the basic input for the pr ...

A social security has been around for a long time and many

A. Social Security has been around for a long time and many people (including me) are receiving benefits. However, it has been said that your generation may never see Social Security Benefits. what can be done to ensure ...

Factsnbsp in 1983 arlene and donald warner inherited a

Facts.  In 1983, Arlene and Donald Warner inherited a one-third interest in a home at 101 Molimo Street in San Francisco. The Warners bought out the other heirs and obtained a $170,000 loan on the property. Donald Warner ...

1 a hires b to work for his logging operation which is

1. A hires B to work for his logging operation, which is dangerous work. A has B sign a contract that says that B will not sue A in the event of injuries that happen on the job. This contract, which is probably illegal i ...

Answer the following question citizen engagement in public

Answer the following Question : Citizen engagement in public administration is important. During the budget process what techniques/questions would you use to gain citizen engagement? The response must be typed, single s ...

1 professor winifred clayton has just read an article in

1. Professor Winifred Clayton has just read an article in Fortune magazine about issues in the Enron bankruptcy. She wishes to share it with her class that morning and makes 50 copies to distribute to them. Professor Cla ...

Can you think of a product or business that was developed

Can you think of a product or business that was developed to build the present/future for better quality of life for everyone? Can you think of a product or business that harms the environment? For this project, use the ...

1 what impact will the reduction of the number of flights

1. What impact will the reduction of the number of flights to the Barcena’s island likely have on the previous demand forecasts that have been created by the resort’s revenue management team? 2. Does the board of directo ...

You have a job assisting the medical director at a family

You have a job assisting the Medical Director at a Family Medical Clinic in New York City. The Medical Director is concerned about the long wait times of patients visiting the clinic and would like to improve operations. ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As