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Andrew Derjani, Fayez Nafeh, Majed Terzia and Gabriel Diab have joined their forces to create an alliance in the production and delivery of online


Andrew Derjani, Fayez Nafeh, Majed Terzia and Gabriel Diab have joined their forces to create an alliance in the production and delivery of online olive oil. This company named F&E www.FE.com.lb is a joined force with more than 30 years of experience in the olive oil industry in addition to an experience software engineer. Together, they think they can adequately estimate the demand, fixed costs, revenues and variable costs for selling 5 Jars of Oil. With a manual process the yearly fixed costs is of $40000 and a variable cost of $30 per jar. A new mechanized process has a fixed cost of $50000 and a variable cost of $50. They expect to sell the Jar for $80. a- What is the break even quantity for the manual process (10 Points) b- What is the revenue at the break even quantity for the manual process (5 Points) c- What is the break even quantity for the mechanized process (10 Points) d- What is the revenue at the break even quantity for the manual process (5 Points)

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