The​ break-even quantity in units for the manual process​ = ______ bags ​(round your response to the nearest whole​ number). ​b) The revenue for the manual process at the​ break-even quantity​ = ​​_______(round your response to the nearest whole​ number). ​c) The​ break-even quantity in units for the mechanized process​ = ________ bags ​(round your response to the nearest whole​ number). ​d) The revenue for the mechanized process at the​ break-even quantity​ = ​

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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12. 

Zan Azlett and Angela Zesiger have joined forces to start​ A&Z Lettuce​ Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing​ experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then​ sorting, washing,​ slicing, preserving, and finally packaging the prepared lettuce.​ Together, with help from​ vendors, they think they can adequately estimate​ demand, fixed​ costs, revenues, and variable cost per bag of lettuce. They think a largely manual process will have monthly fixed costs of
$36,000
and variable costs of
$1.75
per bag. A more mechanized process will have fixed costs of
$72,000
per month with variable costs of
$1.25
per bag. They expect to sell the shredded lettuce for
$2.75
per bag.
Part 2

a) The​ break-even quantity in units for the manual process​ = ______ bags ​(round your response to the nearest whole​ number).

​b) The revenue for the manual process at the​ break-even quantity​ = ​​_______(round your response to the nearest whole​ number).

​c) The​ break-even quantity in units for the mechanized process​ = ________ bags ​(round your response to the nearest whole​ number).

​d) The revenue for the mechanized process at the​ break-even quantity​ = ​_________ (round your response to the nearest whole​ number).

​e) For monthly sales of ​bags, for the option with manual​ processing, A&Z Lettuce Products will have a profit of ______ ​(round your response to the nearest whole number and include a minus sign if the profit is​negative).

​f) For monthly sales of ​bags, for the option with mechanized​ processing, A&Z Lettuce Products will have a profit of ​_______​(round your response to the nearest whole number and include a minus sign if the profit is​ negative).

​g) The quantity at which Zan and Angela are going to be indifferent between the manual and mechanized process​ = _______ bags​(round your response to the nearest whole​ number).

​h) If the demand exceeds the point of​ indifference, then Zan and Angela should prefer the option with______

I) If the demand stays below the point of​ indifference, then Zan and Angela should prefer the option with______

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