At an activity level of 8,500 machine-hours in a month, Falks Corporation’s total variable production engineering cost is $748,8
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Answer:
a) Oven A = 1,667; Oven B = 2,353 pizzas.
b) Oven A
c) Oven A
d) 13,334 pizzas
Explanation:
Since nothing was mentioned regarding her time availability, the capacity of each oven will not be taken into account.
The income equation for ovens A and B, respectively, are:
Where 'x' is the number of pizzas sold.
a) The break-even occurs when income is zero:
Rounding up to the next whole pizza, the break-even for oven A is 1,667 pizzas and for oven B it is 2,353 pizzas.
b) For x = 9,000:
Income is greater with oven A, so Janelle should use oven A.
c) For x = 12,000
Income is greater with oven A, so Janelle should use oven A.
d) She should switch ovens at the value for 'x' that causes B to be greater than A:
Rounding up to the next whole pizza, she should switch ovens at a volume of 13,334 pizzas.
Your answer is:
It is too difficult to compete with major retailers like Target and Best Buy.
When a lot of people buy things from a store, there is a lot of turbulence in many stores, espeically in big retailers. The answer will be It is too difficult to compete with major retailers like Target and Best Buy.
Best of Luck!