Zania Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zania 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 bag of lettuce. They think a largely manual process will have monthly fixed costs of $40,000 and variable costs of $1.60 per bag. A more mechanized process will have fixed costs of $75,000 per month with variable costs of $1.25 per bag. They expect to sell the shredded lettuce for $2.50 per bag. a) The break-even quantity in units for the manual process = bags (round your response to the nearest whole number). b) The revenue for the manual process at the break-even quantity = $ (round your response to the nearest whole number). bags (round your response to the nearest whole number). c) The break-even quantity in units for the mechanized process = d) The revenue for the mechanized process at the break-even quantity = $☐ (round your response to the nearest whole number). e) For monthly sales of 60,000 bags, for the option with manual processing, A&Z Lettuce Products will have a profit of $ profit is negative). (round your response to the nearest whole number and include a minus sign if the f) For monthly sales of 60,000 bags, for the option with mechanized processing, A&Z Lettuce Products will have a profit of $☐ (round your response to the nearest whole number and include a minus sign if the profit is negative). g) The quantity at which Zania and Angela are going to be indifferent between the manual and mechanized process = h) If the demand exceeds the point of indifference, then Zania and Angela should prefer the option with If the demand stays below the point of indifference, then Zania and Angela should prefer the option with bags (round your response to the nearest whole number). processing. processing.

Zania Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zania 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 bag of lettuce. They think a largely manual process will have monthly fixed costs of $40,000 and variable costs of $1.60 per bag. A more mechanized process will have fixed costs of $75,000 per month with variable costs of $1.25 per bag. They expect to sell the shredded lettuce for $2.50 per bag. a) The break-even quantity in units for the manual process = bags (round your response to the nearest whole number). b) The revenue for the manual process at the break-even quantity = $ (round your response to the nearest whole number). bags (round your response to the nearest whole number). c) The break-even quantity in units for the mechanized process = d) The revenue for the mechanized process at the break-even quantity = $☐ (round your response to the nearest whole number). e) For monthly sales of 60,000 bags, for the option with manual processing, A&Z Lettuce Products will have a profit of $ profit is negative). (round your response to the nearest whole number and include a minus sign if the f) For monthly sales of 60,000 bags, for the option with mechanized processing, A&Z Lettuce Products will have a profit of $☐ (round your response to the nearest whole number and include a minus sign if the profit is negative). g) The quantity at which Zania and Angela are going to be indifferent between the manual and mechanized process = h) If the demand exceeds the point of indifference, then Zania and Angela should prefer the option with If the demand stays below the point of indifference, then Zania and Angela should prefer the option with bags (round your response to the nearest whole number). processing. processing.

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...

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