PS.52 The Station, a boutique cookie company, needs to create a production process for its new...
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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 Pre-Bake Easy Bake Speed Bake Fixed Costs $210 $540 $795 Labor Costs $1.79 $1.40 $1.33 Material Costs $0.70 $0.50 $0.50 The Station estimates demand for the semester will be 605 dozen cinnamon malt ball cookies. Due to the cookies' expected. popularity the selling price will be $5.95 per dozen. Based on the projected demand (volume) for the semester, which process type should they select? 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). . 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). 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. For a volume that is 3 units greater than the break-even point (derived in the previous two questions), which process option would be best? 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 Pre-Bake Easy Bake Speed Bake Fixed Costs $210 $540 $795 Labor Costs $1.79 $1.40 $1.33 Material Costs $0.70 $0.50 $0.50 The Station estimates demand for the semester will be 605 dozen cinnamon malt ball cookies. Due to the cookies' expected. popularity the selling price will be $5.95 per dozen. Based on the projected demand (volume) for the semester, which process type should they select? 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). . 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). 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. For a volume that is 3 units greater than the break-even point (derived in the previous two questions), which process option would be best?
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1 PreBake Process Total Cost per Dozen Fixed Costs Labor Costs Material Costs Total Cost per Dozen 210 179 070 210 249 21249 Total Cost for 605 dozen 605 21249 Total Cost for 605 dozen 12828845 Total ... View the full answer
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