The Station estimates demand for the semester will be 620 dozen cinnamon mait ball cookles. Due to the COOkies' expected popularity the selling price wII $5.25 per dozen. Based on the projected demand (volume) for the semester, which process type should they select? O Speed Bake O Pre-Bake O Easy Bake Under this process type-the one selected in the previous question-what would be their profits for the semester? (Display your answer to the nearest who number). 1596 What would be the break-even point (in unit volume or demand) between the process option you selected above and the "Speed Bake" process option? (Display your answer to the nearest whole number),

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question
PS.52 The Station, a boutique cookie company, needs to create a production process for its new cinnamon malt ball cookies. To help accomplish this, the
company has put together some numbers for production costs (per dozen cookies for the variable costs).
Process Type
Fixed Costs
Labor Costs
Material Costs
Pre-Bake
$169
$1.89
$0.62
Easy Bake
$469
$1.41
$0.51
Speed Bake
$774
$1.35
$0.51
The Station estimates demand for the semester will be 620 dozen cinnamon malt ball cookies. Due to the cookies' expected popularity the selling price will be
$5.25 per dozen.
Based on the projected demand (volume) for the semester, which process type should they select?
Speed Bake
Pre-Bake
Easy Bake
Under this process type-the one selected in the previous question-what would be their profits for the semester? (Display your answer to the nearest whole
number).
1596
What would be the break-even point (in unit volume or demand) between the process option you selected above and the "Speed Bake" process option?
(Display your answer to the nearest whole number).
5083
For a unit volume (or demand level) that is EXACTLY equal to the UNROUNDED break-even point (derived in the previous question), what would be the total
cost? (Display your answer to the nearest whole number).
HINT: When using the break-even point derived in the previous question, be sure to NOT use it as a rounded number. Instead, be sure to include the exact
break-even point, including any digits after the decimal, in order to get the correct total cost. If necessary, use direct cell referencing to ensure the correct
break-even point is used.
0455
Transcribed Image Text:PS.52 The Station, a boutique cookie company, needs to create a production process for its new cinnamon malt ball cookies. To help accomplish this, the company has put together some numbers for production costs (per dozen cookies for the variable costs). Process Type Fixed Costs Labor Costs Material Costs Pre-Bake $169 $1.89 $0.62 Easy Bake $469 $1.41 $0.51 Speed Bake $774 $1.35 $0.51 The Station estimates demand for the semester will be 620 dozen cinnamon malt ball cookies. Due to the cookies' expected popularity the selling price will be $5.25 per dozen. Based on the projected demand (volume) for the semester, which process type should they select? Speed Bake Pre-Bake Easy Bake Under this process type-the one selected in the previous question-what would be their profits for the semester? (Display your answer to the nearest whole number). 1596 What would be the break-even point (in unit volume or demand) between the process option you selected above and the "Speed Bake" process option? (Display your answer to the nearest whole number). 5083 For a unit volume (or demand level) that is EXACTLY equal to the UNROUNDED break-even point (derived in the previous question), what would be the total cost? (Display your answer to the nearest whole number). HINT: When using the break-even point derived in the previous question, be sure to NOT use it as a rounded number. Instead, be sure to include the exact break-even point, including any digits after the decimal, in order to get the correct total cost. If necessary, use direct cell referencing to ensure the correct break-even point is used. 0455
For a unit volume (or demand level) that is EXACTLY equal to the UNROUNDED break-even point (derived in the previous question), what would be the total
cost? (Display your answer to the nearest whole number).
HINT: When using the break-even point derived in the previous question, be sure to NOT use it as a rounded number. Instead, be sure to include the exact
break-even point, including any digits after the decimal, in order to get the correct total cost. If necessary, use direct cell referencing to ensure the correct
break-even point is used.
9455
For a volume that is 5 units greater than the break-even point (derived in the previous two questions), which process option would be best?
Speed Bake
Pre-Bake
Easy Bake
Transcribed Image Text:For a unit volume (or demand level) that is EXACTLY equal to the UNROUNDED break-even point (derived in the previous question), what would be the total cost? (Display your answer to the nearest whole number). HINT: When using the break-even point derived in the previous question, be sure to NOT use it as a rounded number. Instead, be sure to include the exact break-even point, including any digits after the decimal, in order to get the correct total cost. If necessary, use direct cell referencing to ensure the correct break-even point is used. 9455 For a volume that is 5 units greater than the break-even point (derived in the previous two questions), which process option would be best? Speed Bake Pre-Bake Easy Bake
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.