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 $37,500 and variable costs of $1.60 per bag. A more mechanized process will have fixed costs of $72,000 per month with variable costs of $1.50 per bag. They expect to sell the shredded lettuce for $2.50 per bag. a) The break-even quantity in units for the manual process = whole number). bags (round your response to the nearest

Management, Loose-Leaf Version
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ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter7: Planning And Goal Setting
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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 $37,500 and variable costs of $1.60 per bag. A
more mechanized process will have fixed costs of $72,000 per month with variable costs of $1.50 per bag.
They expect to sell the shredded lettuce for $2.50 per bag.
a) The break-even quantity in units for the manual process =
whole number).
bags (round your response to the nearest
Transcribed Image Text: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 $37,500 and variable costs of $1.60 per bag. A more mechanized process will have fixed costs of $72,000 per month with variable costs of $1.50 per bag. They expect to sell the shredded lettuce for $2.50 per bag. a) The break-even quantity in units for the manual process = whole number). bags (round your response to the nearest
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