Question
a distributor of prewashed shredded lettuce is opening a new plant and considering whether to use a mechanical process or a manual process to prepare
a distributor of prewashed shredded lettuce is opening a new plant and considering whether to use a mechanical process or a manual process to prepare the product. the manual process will have a fixed cost of $43,400 per month and a variable cost of $1.80 per 5 pound bag. the mechanized process would have a fixed cost of $84,600 per month and a variable cost of $1.30 per bag. the company expects to sell each bag of shredded letter for $2.50. a. find the break even point for each process b. what is the monthly profit or loss if the company chooses the manual process and sells 70,000 bags per month?
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