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 ALSO 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. For Completion on Page 2: Complete the mathematics required; round to 2 decimal points. Answer the relevant questions and provide brief (less than 1 sentence) explanation as necessary. REMINDERS: - If you write an answer and math is not included or does not correspond, you will receive zero points. - You are not permitted to cross out answers; use white-out or start over. If you do not do this, you will receive zero points. - If I cannot read your work, you will receive zero points. - Round to 2 decimal points. DO NOT SUBMIT THIS PAGE. Instructions: Print this page, reproduce by hand or complete via computer. Regardless, you must note answers in the space provided ONLY. All supporting math (round to 2 decimal points) must be shown in the corresponding space. When completed: Take a photo of this page and next/save file and upload via the corresponding Assignment link in Canvas by the due date. Remember No. HEIC files OR, red ink permitted. PART 1: Listed at the right are the Fixed and Variable costs and maximum capacity for each food wrapping machine being considered. (6 pts) 1. What is the breakeven point for each machine if average revenue per unit is $3.50 ? (1 point each) units units units 2. Given the BEPs you just calculated and the data in the above chart, which (if any) machine would you select if daily demand was expected to range between 8,000 and 12,000 over the next 3 years? Explain in one BPIEF statement. (2 pts) Machine: Justification: 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. (10 pts) 1. What are the low-cost output ranges for each alternative given the cost info and capacity info at left? (show ALL pertinent math below and relevant ranges Ranges and Math Area ( 5 pts) Final Answer Ranges ( 3 pts): 0 2. If demand for sanitizing was expected to range between 750 and 1,000 units for the next 5 years, which process would you select? Explain in one BRIEF statement. (2 pts) Answer: Explanation: 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 ALSO 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. For Completion on Page 2: Complete the mathematics required; round to 2 decimal points. Answer the relevant questions and provide brief (less than 1 sentence) explanation as necessary. REMINDERS: - If you write an answer and math is not included or does not correspond, you will receive zero points. - You are not permitted to cross out answers; use white-out or start over. If you do not do this, you will receive zero points. - If I cannot read your work, you will receive zero points. - Round to 2 decimal points. DO NOT SUBMIT THIS PAGE. Instructions: Print this page, reproduce by hand or complete via computer. Regardless, you must note answers in the space provided ONLY. All supporting math (round to 2 decimal points) must be shown in the corresponding space. When completed: Take a photo of this page and next/save file and upload via the corresponding Assignment link in Canvas by the due date. Remember No. HEIC files OR, red ink permitted. PART 1: Listed at the right are the Fixed and Variable costs and maximum capacity for each food wrapping machine being considered. (6 pts) 1. What is the breakeven point for each machine if average revenue per unit is $3.50 ? (1 point each) units units units 2. Given the BEPs you just calculated and the data in the above chart, which (if any) machine would you select if daily demand was expected to range between 8,000 and 12,000 over the next 3 years? Explain in one BPIEF statement. (2 pts) Machine: Justification: 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. (10 pts) 1. What are the low-cost output ranges for each alternative given the cost info and capacity info at left? (show ALL pertinent math below and relevant ranges Ranges and Math Area ( 5 pts) Final Answer Ranges ( 3 pts): 0 2. If demand for sanitizing was expected to range between 750 and 1,000 units for the next 5 years, which process would you select? Explain in one BRIEF statement. (2 pts) Answer: Explanation