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The local convenience store makes bread. Currently, their oven can produce 50 pieces of bread per hour. It has a fixed cost of $2,000, and a variable cost of $0.25 per bread. The owner is considering a bigger oven that can make 75 pieces of bread per hour. It has a fixed cost of $3,000, but a variable cost of $0.20 per piece of bread.
The price per bread is $5. The current break-even points in units is:
The current break-even point in dollars is:
The new break-even point in units will be:
The new break-even point in dollars will be:
If the owner expects to sell 9,000 pieces of bread and changes the oven, will profit change? If so, by how much?
Industrial Production The output of U.S. factories is mines, and utilities. This output constitutes the production of things like the goods, portion of goods, and the services.
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manufacturing operation definition and objective
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