Beth’s Bakery can comfortably produce 60 brownies in oneday. If Beth takes some unusual measures, such as hiring her twoaunts to help in the kitchen and work overtime, she can produceup to 100 brownies in one day.(a) What are the design and eff ective capacities for Beth’s Bakery?(b) If Beth is currently producing 64 brownies, compute thecapacity utilization for both measures. What can youconclude?
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
Beth’s Bakery can comfortably produce 60 brownies in one
day. If Beth takes some unusual measures, such as hiring her two
aunts to help in the kitchen and work overtime, she can produce
up to 100 brownies in one day.
(a) What are the design and eff ective capacities for Beth’s Bakery?
(b) If Beth is currently producing 64 brownies, compute the
capacity utilization for both measures. What can you
conclude?
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