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Problem 7.10 Question Help California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering

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Problem 7.10 Question Help California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $90,000 per month and a variable cost of $1.10 per bag, Clunker has a fixed cost of only $36,000 per month, but a variable cost of $1.60. Selling price is $2.20 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.) e b) What is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 110,000 bags per month? Monthly profitis -Snean - Price per unit x Number of units - Total cost your spons 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 110,000 bags per month

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