Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Five years ago, the Sushi King Restaurant acquired and implemented an automated process for making sushi automatically. However, the manufacturer of the process has made

image text in transcribed
Five years ago, the Sushi King Restaurant acquired and implemented an automated process for making sushi automatically. However, the manufacturer of the process has made significant progress on the Learning Curve and can make some major revamps to the process that will result in additional fixed costs of $50,000 and will produce a 10% reduction in unit variable cost, bringing the unit variable cost to $0.63 per unit. The company has been assured that sushi made using the revamped automated process is slightly better than that made by the automated process implemented five years ago. The following are relevant cost and volume data; Annual fixed cost Variable cost/unit Automated process $150,000 $ 0.70 Revamped automated process 200,000 0.63 Annual Volume (units) 750,000 Sushi King sells sushi at $1.25 per unit. Compute: a) Compute the indifference (crossover point for these two processes, use your results to identify the least cost process for the volume of production expected by the company, and compute the Breakeven Point for that least cost process. The Breakeven point is equal to

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Day Trade Futures

Authors: Joseph Dinero

1st Edition

154249902X, 978-1542499026

More Books

Students also viewed these Finance questions

Question

Discuss the implications of Husserls phenomenology for psychology.

Answered: 1 week ago