Having been in a good business for years

Assignment Help Operation Management
Reference no: EM131691652

Having been in a good business for years, a bakery shop is now considering an upgrade. Currently, the shop mainly operates manual processes with only $1, 500 fixed cost a year and $40 for each cake it produces. Hilda, the owner is reviewing two alternatives: semi-automatic and full-automatic equipment. Semi-automatic equipment can lower down the cost to only $25 a cake at $6,000 fixed cost a year. Using full-automatic equipment can reduce the cost significantly to $12 a cake. However, the fixed cost will increase to $15,000 a year.

a. Which alternative should Hilda choose?

b. Draw the graph to illustrate this situation.

Reference no: EM131691652

Questions Cloud

Maintain same equilibrium output in economy : Is it possible to decrease G but to maintain the same equilibrium output in the economy before the spending cuts? If so, how?
Full-service family shoe store in local mall : Assume you own a full-service family shoe store in a local mall that sells athletic footwear (sneakers) and women & men & children dress shoes.
Opportunity cost for four years of college : What is your opportunity cost for four years of college?
Analyze the given transactions on the work sheet : (Analyzing transactions on a work sheet) Ted's Ambulette provides services to and from hospitals and nursing homes. Ted, who went into business recently.
Having been in a good business for years : Having been in a good business for years, a bakery shop is now considering an upgrade. Which alternative should Hilda choose?
Problem regarding the opportunity cost : You work as an assistant coach on the university basketball team and earn $13 per hour. One day, you decide to skip the hour-long practice
How will you design the given portion of the intervention : Changing Behaviors Refer to the unit lesson for the specific information needed for this section. How will you design this portion of the intervention?
Post the journal entries to general ledger t-accounts : (Recording debits and credits) Joseph DeLapa, DDS, opened his practice on June 1, 2013. He had the following transactions during the 3-month period June.
What are your impressions of the modern man : Identify three symbols in the readings from this week and discuss what you think those symbols mean in the context of the story or poem in which they are found

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd