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Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations

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Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that travel to various locations in Philadelphia, Monday-Friday. The lunch trucks deliver pre-packaged healthy sandwich and salad alternatives, fresh fruit and pre-packaged low-fat desserts and canned beverages. Together, the partners have to make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient and profitable. Current Situation: Given the current health concerns surrounding COVID, Wes and Steve must modify some of their exisiting methods for operating their central kitchen and lunch trucks. They are considering 2 key decisions: Part 1: The central kitchen must now pre-wrap all desserts being sold via the lunch trucks. This will require the purchase of an automated food wrapping machine to ensure efficiency. Wes and Steve have narrowed their choices down to 3 different models-with cost and capacity information as shown in Part 1 on the next page. Part 2: Wes and Steve need to implement a new internal process to clean and sanitize kitchen and lunch truck equipment. The fixed and variable costs and capacities for each process are listed in Part 2 on the next page. Utilize this information to determine the lowest cost range for production and to answer questions that follow on page 3. For Completion on Pages 2 and 3: Complete the mathematics required; round to 2 decimal points. Answer the relevant questions and provide brief (less than 1 sentence) explanation as necessary. Part 2 Wes and Steve also want to evaluate an internal process that would be used to clean and sanitize kitchen and lunch truck equipment. The fixed and variable costs and capacities for each process are listed below. Utilize this information to answer questions that follow. Process Fixed Cost Variable Cost/Unit Capacity A $4,000 $2 2,000 B $2,600 $4 600 $2,000 $8 1,000 Continue to next page 1. What are the low-cost output ranges for each alternative given the cost info and capacity info above? (show ALL pertinent math and relevant ranges below (on both the 0... continuum and in table). (8 pts) 0 (2 pts) Math Area (6 pts): Process Range Answer 0 - 3 pts 2. If demand for sanitizing was expected to range between 400 and 1,300 units for the next year, which process would you select? Explain in one sentence. (1 pt) Answer: Explanation

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