Question: answer all 3 please 6) [1 Point] (This Question is related to Chapter 7 section Four Process Strategies) Kirstin is thinking about opening a Chinese
answer all 3 please
6) [1 Point] (This Question is related to Chapter 7 section Four Process Strategies) Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker. Machine A has fixed costs of $100 and variable costs of $1/pound. Machine B has fixed costs of $500 and variable costs of $0.10/pound. If Kirstin plans to sell 1000 pounds of rice, which machine should she choose? What is the crossover point? 7) [1 Point] This Question is related to Chapter Supplement 7 section Break-Even Analysis) A product is currently made in a process- focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain. 8) [1 Point] This Question is related to Chapter Supplement 7 section Break-Even Analysis) A firm sells two products. Product R sells for $20; its variable cost is $12. Product S sells for $50; its variable cost is $15. Product R accounts for 30 percent of the firm's sales, while S accounts for 70 percent. The firm's fixed costs are $2 million annually. Calculate the firm's break- even point in dollars
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
