hework: Process Strategy

Remaining Time: $172$:$27$:$10$

PS$.52$ The Station, a boutique cookie company, needs to create a production process for its new cinnamon malt ball cookies. To help accomplish this, the company has put together some numbers for production costs $($per dozen cookies for the variable costs$).$

$\backslash$table$[[$Process Type,Fixed Costs,Labor Costs,Material Costs$],[$Pre$-$Bake,$$203,$$$1\mathrm{.}72,$$$0\mathrm{.}60],[$Easy Bake,$$538,$$$1\mathrm{.}51,$$$0\mathrm{.}55],[$Speed Bake,$$778,$$$1\mathrm{.}35,$$$0\mathrm{.}55]]$

The Station estimates demand for the semester will be $905$ dozen cinnamon malt ball cookies. Due to the cookies' expected popularity the selling price will be $$5\mathrm{.}55$ per dozen.

Based on the projected demand $($volume$)$ for the semester, which process type should they select?

Speed Bake

Easy Bake

Pre$-$Bake

Under this process type $-$ the one selected in the previous question $-$ what would be their profits for the semester? $($Display your answer to the nearest whole number$).$

What would be the break$-$even point $($in unit volume or demand$)$ between the process option you selected above and the "Easy Bake" process option? $($Display your answer to the nearest whole number$).$

For a unit volume $($or demand level$)$ that is EXACTLY equal to the UNROUNDED break$-$even point $($derived in the previous question$),$ what would be the total cost? $($Display your answer to the nearest whole number$).$

HINT: When using the break$-$even point derived in the previous question, be sure to NOT use it as a rounded number. Instead, be sure to include the exact break$-$even point, including any digits after the decimal, in order to get the correct total cost. If necessary, use direct cell referencing to ensure the correct break$-$even point is used.

For a volume that is $4$ units greater than the break$-$even point $($derived in the previous two questions$),$ which process option would be best?

Easy Bake

Pre$-$Bake

Speed Bake