Reference no: EM131412456
California? Gardens, Inc.,? prewashes, shreds, and distributes a variety of salad mixes in? 2-pound bags. Doug? Voss, Operations? VP, is considering a new? Hi-Speed shredder to replace the old?machine, referred to in the shop as? "Clunker." Hi-Speed will have a fixed cost of $85,000 per month and a variable cost of ?$1.25 per bag. Clunker has a fixed cost of only ?$44,000 per? month, but a variable cost of? $1.75. Selling price is? $2.50 per bag.
a) What is the crossover point in units? (point of? indifference) for the? processes?
The crossover point is XX units. ?(Round your response to the nearest whole? number.)
?b) What is the monthly profit or loss if the company changes to the? Hi-Speed shredder and sells 60,000 bags per? month?
The monthly profit or loss if the company changes to the? Hi-Speed shredder and sells 60,000 bags per month is ?$ XX. ?(Round your response to the nearest dollar and include a minus sign if? necessary.)
?c) What is the monthly profit or loss if the company stays with Clunker and sells 60,000 bags per? month?
The monthly profit or loss if the company stays with Clunker and sells 60,000 bags per month is ?$ XX. ?(Round your response to the nearest dollar and include a minus sign if? necessary.)
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What is the crossover point in units? for the? processes
: California? Gardens, Inc.,? prewashes, shreds, and distributes a variety of salad mixes in? 2-pound bags. Doug? Voss, Operations? VP, is considering a new? Hi-Speed shredder to replace the old?machine, referred to in the shop as? "Clunker." What is ..
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