The crossover point in units. Introduction : The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

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Answer 1

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Chapter 7, Problem 10P

a)

Summary Introduction

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

b)

Summary Introduction

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

c)

Summary Introduction

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

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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 replacethe 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?b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 60,000 bags per month? c) What is the monthly profit or loss if the company stays with Clunker and sells 60,000 bags per month?

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 $87,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $31,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. Part 2 a) What is the crossover point in units (point of indifference) for the processes? The crossover point is units. (Round your response to the nearest whole number.)

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 $87,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $31,000 per month, but a variable cost of $1.70. Selling price is $2.40 per bag. Part 2 a) What is the crossover point in units (point of indifference) for the processes? The crossover point is 112000112000 units. (Round your response to the nearest whole number.) Part 3 b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month? The monthly profit or loss if the company changes to the Hi-Speed shredder and sells 90,000 bags per month is $enter your response here. (Round your response to the nearest dollar and include a minus sign if necessary.)

Answer 2

Question

Chapter 7, Problem 10P

a)

Summary Introduction

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

b)

Summary Introduction

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

c)

Summary Introduction

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

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Answer 3

Question

Chapter 7, Problem 10P

a)

Summary Introduction

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

b)

Summary Introduction

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

c)

Summary Introduction

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 10P

a)

Summary Introduction

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

b)

Summary Introduction

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

c)

Summary Introduction

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 10P

a)

Summary Introduction

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

b)

Summary Introduction

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

c)

Summary Introduction

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

Answer 6

Chapter 7, Problem 10P

a)

Summary Introduction

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

Answer 7

Chapter 7, Problem 10P

a)

Summary Introduction

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

Answer 8

b)

Summary Introduction

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

Answer 9

b)

Summary Introduction

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

Answer 10

c)

Summary Introduction

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

Answer 11

c)

Summary Introduction

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 7.S - Prob. 1DQ Ch. 7.S - Prob. 2DQ Ch. 7.S - Prob. 3DQ Ch. 7.S - Prob. 4DQ Ch. 7.S - Prob. 5DQ Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQ Ch. 7.S - Prob. 8DQ Ch. 7.S - Prob. 9DQ Ch. 7.S - Prob. 10DQ

The crossover point in units. Introduction : The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

To determine: The crossover point in units. Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.

To determine: The monthly profit or loss for high speed shredder when selling 60,000 bags per month.

To determine: The monthly profit or loss for Clunker when selling 60,000 bags per month.

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Chapter 7 Solutions

To determine: The crossover point in units.

Introduction: The crossover point is the point at which revenue and expenses of the firm are equal. The company will experience neither loss nor profit at break-even point. Feasibility of the project can be determined using the crossover point.