Zan Azlett and Angela Zesiger have joined forces to start​ A&Z Lettuce​ Products, a processor of packaged shredded lettu

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answerhappygod
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Zan Azlett and Angela Zesiger have joined forces to start​ A&Z Lettuce​ Products, a processor of packaged shredded lettu

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Zan Azlett and Angela Zesiger have joined forces tostart​ A&Z Lettuce​ Products, a processor of packagedshredded lettuce for institutional use. Zan has years of foodprocessing​ experience, and Angela has extensive commercialfood preparation experience. The process will consist of openingcrates of lettuce and then​ sorting, washing,​ slicing,preserving, and finally packaging the preparedlettuce.​ Together, with help from​ vendors, they thinkthey can adequately estimate​ demand, fixed​ costs,revenues, and variable cost per bag of lettuce. They think alargely manual process will have monthly fixed costsof $37,500 and variable costs of $1.60 per bag.A more mechanized process will have fixed costsof $75,000 per month with variable costsof $1.00 per bag. They expect to sell the shreddedlettuce for $2.75 per bag.
​a) The​ break-even quantity in units for the manualprocess​ _____ bags ​(round your response to the nearestwhole​ number).
​b) The revenue for the manual process at the​ break-evenquantity​ = _____ ​(round your response to the nearestwhole​ number).
​c) The​ break-even quantity in units for the mechanizedprocess​ = ______ bags ​(round your response to thenearest whole​ number).
​d) The revenue for the mechanized process atthe​ break-even quantity​ = _______ ​(round yourresponse to the nearest whole​ number).
​e) For monthly sales of 55,000 ​bags, for the optionwith manual​ processing, A&Z Lettuce Products will have aprofit of ________ ​(round your response to the nearest wholenumber and include a minus sign if the profitis​ negative).
​f) For monthly sales of 55,000 ​bags, for the optionwith mechanized​ processing, A&Z Lettuce Products willhave a profit of ______ ​(round your response to the nearestwhole number and include a minus sign if the profitis​ negative).
​g) The quantity at which Zan and Angela are going to beindifferent between the manual and mechanized process​ =_______ bags ​(round your response to the nearestwhole​ number).
​h) If the demand exceeds the point of​ indifference, thenZan and Angela should prefer the option with ( manualor mechanized ) processing.
If the demand stays below the point of​ indifference, thenZan and Angela should prefer the option with ( manual ormechanized ) processing.
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