(5 marks) c) Costs and Pricing. i. Make a list of the fixed and of variable costs you think would be incurred in running a bakery in a suburban shopping centre. ii. What is "gross profit margin"? Three bakers run a bakery for six days each week on an 8-hour shift each person per day. Their total fixed costs are $4,800 pw and their current variable costs total $3,000 pw. At present, they produce 7,400 loaves pw but sell only 7,000 pw, with the unsold loaves given to a charity at the end of each day, before they go stale. What selling price do they need to set per loaf sold to break even? What price would they need to charge if they set their gross profit margins at 25%. What is their labour productivity in loaves produced/hour worked and, at the 25% gross profit margin, in $ earnt/hour worked? (10 marks) 3. a) In what ways does improving total productivity improve a company's competitive position? (5 marks) b) A company machines extrusion nozzle for 3-D printer filament at a cost of $60 each nozzle. The target hole diameter is 1.75 mm. Oversized nozzles (>1.75 mm) must be rejected, but undersized nozzles can be reworked. The following hole diameters were found in a batch of nozzles (in mm): 1.45 1.46 | 1.50 1.55 | 1.62 1.67 1.71 | 1.71 1.73 1.74 1.75 1.75 1.75 1.75 1.76 1.77 | 1.79 | 1.79 1.80 The cost of re-machining the 1.55 mm nozzle above was $5.00. What is the average Taguchi loss contained in the whole batch and cost of fixing the undersized nozzles? (10 marks)