Question: c) The break-even quantity in units for the mechanized process = _____bags (round your response to the nearest whole number). d) The revenue for the

c) The break-even quantity in units for the mechanized process = _____bags (round your response to the nearest whole number).
d) The revenue for the mechanized process at the break-even quantity =$_______(round your response to the nearest whole number).
The revenue for the manual process at the? break-even quantity? = $_______
e) For monthly sales of 60,000? bags, for the option with manual? processing, A&Z Lettuce Products will have a profit of
?$ ?
f) For monthly sales of 60,000 bags, for the option with mechanized? processing, A&Z Lettuce Products will have a profit of ?$
g) The quantity at which Zan and Angela are going to be indifferent between the manual and mechanized process? = ___ bags ?
h) If the demand exceeds the point of? indifference, then Zan and Angela should prefer the option with ______ processing? (mechanized or manual)
If the demand stays below the point of? indifference, then Zan and Angela should prefer the option with______ processing? (mechanized or manual)
Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per bag of lettuce. They think a largely manual process will have monthly fixed costs of $37,500 and variable costs of $1.60 per bag. A more mechanized process will have fixed costs of $75,000 per month with variable costs of $1.50 per bag. They expect to sell the shredded lettuce for $3.00 per bag. a) The break-even quantity in units for the manual process = 26786 bags (round your response to the nearest whole number). b) The revenue for the manual process at the break-even quantity = $|| (round your response to the nearest whole number)Step by Step Solution
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