Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

The owner of XtremeHotPizza restaurant, is considering a new oven in which to bake the restaurant’s signature dish, vegetarian & seafood pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $24,000 and the variable costs are $2.25 per pizza. Oven B is larger and can handle 50 pizzas an hour. The fixed costs associated with oven B are $43,000 and the variable costs are $1.55 per pizza. The pizzas sell for $14.00 each. (a) What is the Break-Even Point (BEP) for each oven? (b) If the owner of this restaurant expects to sell 6,000 pizzas, which oven system are you going to recommend? (Net Profit = Total Revenue (TR) – Total Cost (TC)) (c) If the owner of this restaurant expects to sell 82,000 pizzas, which oven system should he/she purchase? (Net Profit = Total Revenue (TR) – Total Cost (TC)) (d) At what volume, should the owner of this restaurant switch ovens to maximize the profit? (Switching Point (= Cross-over Point) à where TC1 = TC2)

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92557217

Have any Question?


Related Questions in Operation Management

1 project managers can identify risks by learning and

1. Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationshi ...

Assignmentstrategic planning in hr is about using

Assignment Strategic planning in HR is about using technological tools and working with people. This assignment will allow you to think about both areas. Use online library resources, and the Internet to research HR chal ...

A foundation of operations in both manufacturing and

A foundation of operations in both manufacturing and service environments is vital in order to drive inefficiencies and examine ways to achieve greater supply chain integration with suppliers and customers. In this assig ...

Consider the following information on an inventory

Consider the following information on an inventory management system:             Item Cost:                                $10             Order Cost:                              $250             Annual Holding Cost:  ...

Questions1rewards are created to motivate individuals in

Questions: 1_Rewards are created to motivate individuals in the workplace (McShane, 2013). That said, do you feel that individuals should be rewarded for doing their job? When does one proceed to reward someone in the wo ...

Describe a recent situation when you had to make a

Describe a recent situation when you had to make a difficult decision. a. What was the situation and what made the situation difficult? b. What options did you identify and how did you weigh these options? c. How did you ...

Identify a social issue you see in latvia social issue can

Identify a social issue you see in Latvia. Social issue can be widely defined as problems that have a negative impact on society in general. These could include but not limited to students dropping out of high school bef ...

The indian courts convicted eight individuals associated

The Indian courts convicted eight individuals associated with the operations of UCIL. However, nomanager from UCC, including Warren Anderson, was convicted. Do you believe that the blame lies solely with the indian manag ...

News vendor model john just started his entrepreneurship in

News vendor model: John just started his entrepreneurship in the business of outdoor material. He bought wetsuits from O’Neill and is selling the suits in his shop. Each wetsuit cost him $240 to order from his supplier. ...

1 describe a situation that caused you to increase your

1. Describe a situation that caused you to increase your perspective how did you it end up and what did you learn 2. How can a leader’s attributes complement his or her ability to effect positive change in an organizatio ...

  • 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