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djyliett [7]
3 years ago
12

A bakery makes a limited number of croissants each day for sale in its coffee shop. The croissants cost $1.00 each to produce an

d sell for $2.00 each. Leftover croissants are sold in the bakery the following day for $0.60 each, and all of those are sold
The excess cost is:
The shortage cost is:
The optimal service level is
Business
1 answer:
slamgirl [31]3 years ago
5 0

Answer:

$0.40 ; $1 and $71.43%

Explanation:

The computation is shown below:

Excess cost is

=  Unit cost - Salvage Value

= $1 - $0.60

= $0.40

The shortage cost is

= Selling value - unit cost

= $2 - $1

= $1

And, the optimal service level is

= Shortage cost ÷ (Shortage cost + excess cost)

= $1 ÷ $1.60

= 71.43%

Basically we applied the above formulas

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Answer:

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Explanation:

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