Question
1-a car rental company at a major airport 70% of its fleet of 375 cars rented each day on average. cars are rented for an
1-a car rental company at a major airport 70% of its fleet of 375 cars rented each day on average. cars are rented for an average of 4 days. how many rentals are processed each day on average?
2- the local convenience store makes personal sized pizza. currently, its process makes complete pizza fully cooked, for the customer. this process has a fixed cost of 20,000 and a variable cost of $1.75 per pizza. the owner is considering a different process that can make pizzas in two ways:
completely cooked ( as before), or partially cooked, and then flash frozen for the customer to finish heating at home. this alternate process has a fixed cost of 24,000, but a lower variable cost ( because much less energy is used in baking) of $1.25 pizza. if the owner expects to sell 9,000 pizzas, what is the crossover point and which process should the store use?
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