How to create cross over chart in excel for this problem Sammy's Best Tee (Sammy likes golf)
Question:
How to create cross over chart in excel for this problem
Sammy's Best "Tee" (Sammy likes golf) makes iced tea and was able to secure a million bottle (annual) contract with a grocer that operates nationally. The contract will be in place for a 12 month period, starting in four months. Before the contract starts, he is trying to figure out what new bottle-making machine he wants to buy, so that he can bottle up those million bottles of tea. He does not know if he will get any more contracts after this first year, so he wants to base his decision on the initial volume of one million. The operations manager has calculated the cost for three potential bottling machine systems. The fixed costs will be: for general-purpose bottle machine, $95,000; the multi-purpose bottle machine, $120,000; and the custom technology bottle machine, $190,000. Variable costs will be: general-purpose, $0.13 per bottle; multi-purpose, $0.11; and custom technology, $0.09.