PS.52 The Station, a boutique cookie company, needs to create a production process for its new...

 
 
 

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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). Process Type Fixed Costs Material Costs Pre-Bake Easy Bake Speed Bake $166 $526 $826 Labor Costs $1.84 $1.48 $1.30 O Speed Bake $0.72 $0.54 $0.54 The Station estimates demand for the semester will be 635 dozen cinnamon malt ball cookies. Due to the cookies' expected popularity the selling price will be $5.90 per dozen. Based on the projected demand (volume) for the semester, which process type should they select? O Easy Bake O 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). Nmero 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). Nmero 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. Nmero For a volume that is 2 units greater than the break-even point (derived in the previous two questions), which process option would be best? O Speed Bake O Easy Bake O Pre-Bake 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). Process Type Fixed Costs Material Costs Pre-Bake Easy Bake Speed Bake $166 $526 $826 Labor Costs $1.84 $1.48 $1.30 O Speed Bake $0.72 $0.54 $0.54 The Station estimates demand for the semester will be 635 dozen cinnamon malt ball cookies. Due to the cookies' expected popularity the selling price will be $5.90 per dozen. Based on the projected demand (volume) for the semester, which process type should they select? O Easy Bake O 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). Nmero 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). Nmero 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. Nmero For a volume that is 2 units greater than the break-even point (derived in the previous two questions), which process option would be best? O Speed Bake O Easy Bake O Pre-Bake

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Detailed Explanation Answer 1 Based on the given question the boutique cookie company is trying to decide between three different production processesPreBake Easy Bake and Speed Bakeeach with differen... View the full answer