Question: A bread-making factory has the production process shown in the figure below. There are three operations (mixing, baking and packaging) in sequence, but it does
A bread-making factory has the production process shown in the figure below. There are three operations (mixing, baking and packaging) in sequence, but it does not matter which oven is used. The factory is considering purchasing faster equipment to replace one of the existing operations. Which operation should be first considered?
Question options:
| Both Bake and Pack should be replaced | |
| Pack | |
| Bake, one oven only | |
| Mix | |
| .Bake, both ovens |
Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $50,000, and its variable cost is $15 per unit. The revenue is $25 per unit. What is the break-even point for machine A?
Question options:
| $11,250 | |
| $125,000 | |
| 11,250 units | |
| 15,000 units | |
| 5000 units |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
