1. If your roommate decides to quit the business. The number of dozens of cookies that will...
Fantastic news! We've Found the answer you've been seeking!
Question:
1. If your roommate decides to quit the business.
The number of dozens of cookies that will be produced per hour will be __?___ dozens of cookies.
Transcribed Image Text:
You and your roommate already own all the necessary capital equipment: a high-capacity professional-grade electric mixer, cookie trays, and spoons. Your apartment has a small oven that will hold one tray at a time. Your landlord pays for all the electricity. The variable costs, therefore, are merely the cost of the ingredients (estimated to be $0.60/dozen), the cost of the box in which the cookies are packed ($0.10 per box; each box holds a dozen cookies), and your time (what value do you place on your time?). A detailed examination of the production process, which specifies how long each of the steps will take, follows. The first step is to take an order, which will be extremely fast and 100% accurate, since your roommate has devised a method using the campus e-mail system to accept orders and to inform customers when their orders will be ready for pickup. Because this runs automatically on your personal computer, it does not take any of your or your roommate's time. Therefore, this step will be ignored in further analysis. You and your roommate have timed the necessary physical operations. The first physical production step is to wash out the electric mixer's bowl and beaters from the previous batch, add the ingredients to the bowl, and turn on the mixer to mix the ingredients. The electric mixer can hold and mix ingredients for up to three dozen cookies. You then spoon the cookies, one dozen at a time, onto a cookie tray. These activities take 6 minutes for the washing and mixing steps, regardless of how many cookies are being made in the batch. That is, to mix enough dough and ingredients for three dozen cookies takes the same 6 minutes as for one dozen cookies. However, spooning the cookies onto the tray takes 2 minutes per tray. The next step, performed by your roommate, is to put the cookies in the oven and set the thermostat and timer, which in total takes about 1 minute. The cookies bake for the next 9 minutes. So total baking time is 10 minutes, during the first minute of which your roommate is busy setting the oven. Because the oven only holds one tray, a second dozen takes an additional 10 minutes to bake. Your roommate also performs the last steps of the process by first removing the cookies from the oven and putting them aside to cool for 5 minutes, then carefully packing them in a box and accepting payment. Removing the cookies from the oven takes a negligible amount of time, but it must be done promptly. It takes 2 minutes to pack each dozen and about 1 minute to accept payment for the order. This is the process you plan to use to produce cookies by the dozen at Kristen's Cookie Company. As experienced bakers know, a few simplifications were made in describing the actual cookie production process. For example, the first batch of cookies for the night requires preheating the oven. However, such complexities will be put aside for now. Begin your analysis by developing a process flow diagram of the cookie-making process. You and your roommate already own all the necessary capital equipment: a high-capacity professional-grade electric mixer, cookie trays, and spoons. Your apartment has a small oven that will hold one tray at a time. Your landlord pays for all the electricity. The variable costs, therefore, are merely the cost of the ingredients (estimated to be $0.60/dozen), the cost of the box in which the cookies are packed ($0.10 per box; each box holds a dozen cookies), and your time (what value do you place on your time?). A detailed examination of the production process, which specifies how long each of the steps will take, follows. The first step is to take an order, which will be extremely fast and 100% accurate, since your roommate has devised a method using the campus e-mail system to accept orders and to inform customers when their orders will be ready for pickup. Because this runs automatically on your personal computer, it does not take any of your or your roommate's time. Therefore, this step will be ignored in further analysis. You and your roommate have timed the necessary physical operations. The first physical production step is to wash out the electric mixer's bowl and beaters from the previous batch, add the ingredients to the bowl, and turn on the mixer to mix the ingredients. The electric mixer can hold and mix ingredients for up to three dozen cookies. You then spoon the cookies, one dozen at a time, onto a cookie tray. These activities take 6 minutes for the washing and mixing steps, regardless of how many cookies are being made in the batch. That is, to mix enough dough and ingredients for three dozen cookies takes the same 6 minutes as for one dozen cookies. However, spooning the cookies onto the tray takes 2 minutes per tray. The next step, performed by your roommate, is to put the cookies in the oven and set the thermostat and timer, which in total takes about 1 minute. The cookies bake for the next 9 minutes. So total baking time is 10 minutes, during the first minute of which your roommate is busy setting the oven. Because the oven only holds one tray, a second dozen takes an additional 10 minutes to bake. Your roommate also performs the last steps of the process by first removing the cookies from the oven and putting them aside to cool for 5 minutes, then carefully packing them in a box and accepting payment. Removing the cookies from the oven takes a negligible amount of time, but it must be done promptly. It takes 2 minutes to pack each dozen and about 1 minute to accept payment for the order. This is the process you plan to use to produce cookies by the dozen at Kristen's Cookie Company. As experienced bakers know, a few simplifications were made in describing the actual cookie production process. For example, the first batch of cookies for the night requires preheating the oven. However, such complexities will be put aside for now. Begin your analysis by developing a process flow diagram of the cookie-making process.
Expert Answer:
Answer rating: 100% (QA)
Lets break down the time required for each step in the cookiemaking process and calculate the number of dozens of cookies that will be produced per ho... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
Students also viewed these general management questions
-
Kristens Cookie Company You and your roommate are preparing to start Kristens Cookie Company in your on-campus apartment. The company will provide fresh cookies to starving students late at night....
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Figure is an overhead view of a thin uniform rod of length 0.600 m and mass M rotating horizontally at 80.0 rad/s counterclockwise about an axis through its center. A particle of mass M/3.00 and...
-
In a single-pass counterflow heat exchanger, 4536 kg/h of water enter at 15?C and cool 9071 kg/h of an oil having a specific heat of 2093 J/(kg ?C) from 93 to 65?C. If the overall heat transfer...
-
What treatment do Refund Liability and Estimated Inventory Returns receive in the financial statements?
-
From 2008 to 2015, auto loan rates in the United States declined from around 8% to near historic lows of around 4%. At the same time, auto sales increased dramatically. How, if at all, does this...
-
Nature Cosmetics Company applies overhead costs on the basis of machine hours. The overhead rate is computed by analyzing data from the previous year to determine the percentage change in costs....
-
Find the x and y intercept For the equation y= 2 x+1, Part: 0/3 Part 1 of 3 (a) Find the x-intercept. The x-intercept is DD
-
(a) The steps in the accounting cycle for a merchandising company differ from the steps in the accounting cycle for a service company. Do you agree or disagree? (b) Is the measurement of net income...
-
A Turbulent Ride Things haven't been going too well for Alliance Airlines lately. Their flights are not taking off on-time and management can't seem to figure out why. Meanwhile, customers are...
-
What does functional cost analysis involve? Group of answer choices product indirect costs allocating costs from the natural accounts to accounts set up for each function or activity. complex segment...
-
In comparison to financial statement audits, auditors who perform integrated audits typically perform ______. Multiple choice question. more substantive procedures than tests of controls more audit...
-
A place to gather information regarding investments that is free to the public and can be accessed during normal business hours is: Multiple choice question. the library. trading floor. options...
-
#1 Classical Liberal Economics (5 points) a. Explain in your own words Adam Smith's Classical Liberal Economics concepts of free trade, free markets, "the invisible hand" at the market place, the...
-
Compute the employer's payroll tax expense based on the following totals found on a completed payroll register dated November 15. bullet Gross pay = $ 41 comma 000.00 bullet Taxable earnings for...
-
Write down (without solving) the dual LP problem. Minimize c = 4s + 4t + 2u subject to su 2300 4st 150 s 0, t0, u 0. Maximize p = x 0, y 0 subject to the following constraints. (Enter your...
-
How do the principles of (a) Physical controls and (b) Documentation controls apply to cash disbursements?
-
The Green Goddess Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the new machine is $45,000. The annual cash...
-
You are the vice-president of finance for Exploratory Resources, headquartered in Calgary. In January 2012, your firm's American subsidiary obtained a six-month loan of $1 million (U.S.) from a bank...
-
Randall Corporation plans to borrow $200,000 for one year at 8 percent from the Dominion Trust Company. There is a 20 percent compensating balance requirement. Randall keeps minimum transaction...
-
An analyst makes the following statement: Use of P/E and other multiples for analysis is not effective because the multiples are based on historical data and because not all companies have positive...
-
The primary difference between P/E multiples based on comparables and P/E multiples based on fundamentals is that fundamentals-based P/Es take into account: A. Future expectations. B. The law of one...
-
A price-to-earnings ratio that is derived from the Gordon growth model is inversely related to the: A. Growth rate. B. Dividend payout ratio. C. Required rate of return.
Study smarter with the SolutionInn App