Question: I need help with the answer boxes that are red please Patricia Zell, a dollmaker from Olney, Maryland, is interested in the mass marketing and


I need help with the answer boxes that are red please
Patricia Zell, a dollmaker from Olney, Maryland, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. Zell has two manufacturing options. Option 1 requires an initial investment of $50,500 for plant and equipment, with labor and material costs of $200.00 per doll. Option 2 requires $101,600 for P&E, but only $175.00 for labor and materials. The doll will sell for $245.00. (a) Your Answer Correct Answer Correct What is the breakeven point for Option 1? (Round answer to the nearest whole number, the tolerance is +/- 1.) The breakeven point for Option 1 is 1122 dolls. e Textbook and Media Solution Attempts: 3 of 3 used (b) Your answer is partially correct. Compare Options 1 and 2. At what volume of demand should Option 1 be chosen? (Round answer to the nearest whole number, the tolerance is +/- 1.) If demand less than 2064 we should choose Option 1. e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer T. W. Smitty, an emerging rapper, has reserved a recording studio for $11,000 to cut his first album, called "Smart Rap." T. W. Smitty is confident that demand for his Smart Rap album will substantially exceed the breakeven point of 4,400 CDs or $15,400 in sales, so T. W.is contemplating having his album cut at a classier (and pricier) studio. The cost of recording the album is $11,000 and copies are $1.00 a piece. The recording costs would rise to $15,700. However, since this new studio works with very high volume, production costs would fall to $0.50 per vinyl album. The vinyl albums are priced at $3.50 each. (a) Correct. What is the breakeven point for this new process? (Round answer to O decimal places, the tolerance is +/- 1.) The breakeven point for Studio A is 5233 CDs. e Textbook and Media Attempts: 1 of 3 used (b) Your answer is partially correct. Compare this process to the process proposed in the previous problem. For what volume of demand should T. W.choose the classier studio? (Round answer to the nearest whole number, the tolerance is +/- 1.) If sales volume than 5233 copies we should choose Studio A. e Textbook and MediaStep 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
