Marketing perspective and finance perspective

Assignment Help Operation Management

Reference no: EM132300934

Problem Solving:

The owner Mang Juan’s Bakery is contemplating adding Spanish bread to his line, which will require leasing new equipment for a monthly payment of PhP 10,000. Variable costs would be PhP 2.00 per Spanish bread, and it would retail for PhP 7.00 each.

a. What would the profit (loss) be if 1,500 Spanish bread are made and sold in a month?

b. How many Spanish bread must be sold to realize a profit of PhP3,000?

c. Your production capacity is only 2,500 units, based in your item B answer, what will be your decision/recommendation? What trade-offs are you willing to make?

d. Based in your item A answer, what else can you do to improve your profitability from an operations perspective, marketing perspective, and finance perspective.

Reference no: EM132300934

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