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5. [10 pts] Suppose the Patty-O-Matic 330A gets an upgrade that decreases the cost of re-using under-sized patties from $0.25 to $0.11, though the price

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5. [10 pts] Suppose the Patty-O-Matic 330A gets an upgrade that decreases the cost of re-using under-sized patties from $0.25 to $0.11, though the price tag increases from $7,995 to $8,100. How do these changes affect your recommendation? Patty-O-Matic 330A Gesame MH-100 Food Former $ 7,995.00 $ 9,900.00 4.00 4.00 0.03 0.01 16 3.99 0.25$ 16 3.99 0.25 $ $ $ $ 2.00$ 12.00 $ 1.50 $ 2.00 12.00 1.50 1 2 3 Cost 4 Average Patty Size (oz) 5 Standard Deviation (oz) 6 7 Ounces per pound 8 Minimum patty size 9 Cost if under 10 11 Supply cost (per lb) 12 Fixed Labor Cost 13 Retail Price per patty 14 15 Total Production (oz) 16 Total Production (lbs) 17 18 Cost of production 19 Cost of reused meat 20 Fixed Labor Cost 21 Total Cost per day 22 23 Total Revenue per day 24 25 Total Profit per day 26 27 Days to Break-even 273.0886901 17.06804313 316.2282917 19.76426823 $ $ $ $ 34.14 $ 8.00 $ 12.00$ 54.14 1 $ 39.53 5.25 12.00 56.78 $ 102.00 $ 118.50 5. [10 pts] Suppose the Patty-O-Matic 330A gets an upgrade that decreases the cost of re-using under-sized patties from $0.25 to $0.11, though the price tag increases from $7,995 to $8,100. How do these changes affect your recommendation? Patty-O-Matic 330A Gesame MH-100 Food Former $ 7,995.00 $ 9,900.00 4.00 4.00 0.03 0.01 16 3.99 0.25$ 16 3.99 0.25 $ $ $ $ 2.00$ 12.00 $ 1.50 $ 2.00 12.00 1.50 1 2 3 Cost 4 Average Patty Size (oz) 5 Standard Deviation (oz) 6 7 Ounces per pound 8 Minimum patty size 9 Cost if under 10 11 Supply cost (per lb) 12 Fixed Labor Cost 13 Retail Price per patty 14 15 Total Production (oz) 16 Total Production (lbs) 17 18 Cost of production 19 Cost of reused meat 20 Fixed Labor Cost 21 Total Cost per day 22 23 Total Revenue per day 24 25 Total Profit per day 26 27 Days to Break-even 273.0886901 17.06804313 316.2282917 19.76426823 $ $ $ $ 34.14 $ 8.00 $ 12.00$ 54.14 1 $ 39.53 5.25 12.00 56.78 $ 102.00 $ 118.50

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