Business, 30.10.2021 01:00, naomicervero
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 $ 75,000 per month with variable costs of $ 1.50 per bag. They expect to sell the shredded lettuce for $ 3.00 per bag.
Required:
a. The​ break-even quantity in units for the manual process​ is :
b. The revenue for the manual process at the​ break-even quantity​ is:
c. The​ break-even quantity in units for the mechanized process is :
Answers: 2
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Zan Azlett and Angela Zesiger have joined forces to start​ A&Z Lettuce​ Products, a processo...
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