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California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2 - pound bags. Doug Voss, Operations VP , is considering a
California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in pound bags. Doug Voss, Operations VP is considering a new HiSpeed shredder to replace the old machine, referred to in the shop as "Clunker." HiSpeed will have a fixed cost of $ per month and a variable cost of $ per bag. Clunker has a fixed cost of only $ per month, but a variable cost of $ Selling price is $ per bag.
a What is the crossover point in units point of indifference for the processes?
The crossover point is units. Round your response to the nearest whole number.
b What is the monthly profit or loss if the company changes to the HiSpeed shredder and sells bags per month?
The monthly profit or loss if the company changes to the HiSpeed shredder and sells bags per month is $Round your response to the nearest dollar and include a minus sign if necessary.
c What is the monthly profit or loss if the company stays with Clunker and sells bags per month?
The monthly profit or loss if the company stays with Clunker and sells bags per month is $Round your response to the nearest dollar and include a minus sign if necessary.
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