The break-even point of each oven given. Introduction: Break-even point (BEP): The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

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Answer 1

Question

Chapter 7.S, Problem 20P

a)

Summary Introduction

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

b)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

c)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

d)

Summary Introduction

To determine: The volume of pizzas at which JE person must switch the ovens.

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Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.a. What is the break-even quantity beyond which the first process is more attractive?b. What is the difference in total cost if the quantity produced is 10,000?

Janelle Heinke, the owners of Ha'Peppas, is consid-ering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the vari-able costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $14 each. a) What is the break-even point for each oven? b) If the owner expects to sell 9,000 pizzas, which oven should she purchase? c)If the owner expects to sell 12,000 pizzas, which oven should she purchase? d) At what volume should Janelle switch ovens?

Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 22 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $3.00 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $12.00 each. a) The break-even point in units for oven type A = units (round your response to the nearest whole number). The break-even point in units for oven type B = units (round your response to the nearest whole number). b) If Janelle is expecting that the pizza shop is going to be able to sell 8,000 pizzas, then she should select oven c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be…

Answer 2

Question

Chapter 7.S, Problem 20P

a)

Summary Introduction

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

b)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

c)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

d)

Summary Introduction

To determine: The volume of pizzas at which JE person must switch the ovens.

Expert Solution & Answer

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Answer 3

Question

Chapter 7.S, Problem 20P

a)

Summary Introduction

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

b)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

c)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

d)

Summary Introduction

To determine: The volume of pizzas at which JE person must switch the ovens.

Expert Solution & Answer

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Answer 4

Question

Chapter 7.S, Problem 20P

a)

Summary Introduction

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

b)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

c)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

d)

Summary Introduction

To determine: The volume of pizzas at which JE person must switch the ovens.

Expert Solution & Answer

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Answer 5

Chapter 7.S, Problem 20P

a)

Summary Introduction

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

b)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

c)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

d)

Summary Introduction

To determine: The volume of pizzas at which JE person must switch the ovens.

Answer 6

Chapter 7.S, Problem 20P

a)

Summary Introduction

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

Answer 7

Chapter 7.S, Problem 20P

a)

Summary Introduction

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

Answer 8

b)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

Answer 9

b)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

Answer 10

c)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

Answer 11

c)

Summary Introduction

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

Answer 12

d)

Summary Introduction

To determine: The volume of pizzas at which JE person must switch the ovens.

Answer 13

d)

Summary Introduction

To determine: The volume of pizzas at which JE person must switch the ovens.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 7.S - Prob. 1DQ Ch. 7.S - Prob. 2DQ Ch. 7.S - Prob. 3DQ Ch. 7.S - Prob. 4DQ Ch. 7.S - Prob. 5DQ Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQ Ch. 7.S - Prob. 8DQ Ch. 7.S - Prob. 9DQ Ch. 7.S - Prob. 10DQ

The break-even point of each oven given. Introduction: Break-even point (BEP): The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

Concept explainers

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

To determine: The volume of pizzas at which JE person must switch the ovens.

Want to see the full answer?

Chapter 7 Solutions

The break-even point of each oven given. Introduction: Break-even point (BEP): The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

Concept explainers

To determine: The break-even point of each oven given. Introduction: Break-even point (BEP): The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.

To determine: The oven that need to be purchased if the owner is expecting to sell 9,000 pizzas.

To determine: The oven that need to be purchased if the owner is expecting to sell 12,000 pizzas.

To determine: The volume of pizzas at which JE person must switch the ovens.

Want to see the full answer?

Chapter 7 Solutions

To determine: The break-even point of each oven given.

Introduction:

Break-even point (BEP):

The break-even point is measured in units or in sales term to identify the point in a business which is required to cover the total investment costs. The total profit at break-even point is zero.