Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think a largely the manual process will have monthly fixed costs of $37,500 and variable costs of $1.75 per bag. A more mechanized process will have fixed costs of $75,000 per month with variable costs of $1.25 per 5-pound bag. They expect to sell the shredded lettuce for $2.50 per 5-pound bag. d) What is the revenue at the break-even quantity for the mechanized process? e) What is the monthly profit or loss of the manual process if they expect to sell 60,000 bags of lettuce per month? f ) What is the monthly profit or loss of the mechanized process if Do they expect to sell 60,000 bags of lettuce per month? g) At what quantity would Zan and Angela be indifferent to the process selected? h) Over what range of demand would the manual process be preferred over the mechanized process? Over what range of demand would the mechanized process be preferred over the manual process?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Zan Azlett and Angela Zesiger have joined forces
to start A&Z Lettuce Products, a processor of packaged shredded
lettuce for institutional use. Zan has years of food processing
experience,
and Angela has extensive commercial food preparation
experience. The process will consist of opening crates of
lettuce
and then sorting, washing, slicing, preserving, and finally
packaging
the prepared lettuce. Together, with help from vendors,
they
think they can adequately estimate demand, fixed costs, revenues,
and variable cost per 5-pound bag of lettuce. They think a
largely
the manual process will have monthly fixed costs of $37,500
and
variable costs of $1.75 per bag. A more mechanized process
will have fixed costs of $75,000 per month with variable costs of
$1.25 per 5-pound bag. They expect to sell the shredded lettuce
for $2.50 per 5-pound bag.
d) What is the revenue at the break-even quantity for the mechanized
process?
e) What is the monthly profit or loss of the manual process if they
expect to sell 60,000 bags of lettuce per month?
f ) What is the monthly profit or loss of the mechanized process if
Do they expect to sell 60,000 bags of lettuce per month?
g) At what quantity would Zan and Angela be indifferent to the
process selected?
h) Over what range of demand would the manual process be
preferred over the mechanized process? Over what range of
demand would the mechanized process be preferred over the
manual process?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
