Question 1 Carrefour sells two types of lettuce manually processed and mechanically processed The manual process will incur a monthly processing cost of $12,500 and a variable cost of $4 per bag, while the mechanized process will incur a monthly processing cost of $11,240 and a variable cost of $5 per bag Both types of lettuce need unique degradable bags costing $1 per bag to Carrefour Irrespective of the process used for production, the store sells lettuce at $10 per bag What is the breakeven volume for the manual process Also, find the breakeven point in dollars What is the breakeven volume for the mechanized process Also, find the breakeven point in dollars If the store expects to sell 5000 bags monthly, which process will be more profitable Why At what sales volume does the manual process earn $5740 more than the mechanized process Find the sales volumes of processes that satisfy the following two conditions sales of the manual process are 300 bags more than the mechanized and earn a profit of $7940 more than the mechanized

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

Question 1 Carrefour sells two types of lettuce: manually processed and mechanically processed. The manual process will incur a monthly processing cost of $12,500 and

Question 1

Carrefour sells two types of lettuce: manually processed and mechanically processed. The manual process will incur a monthly processing cost of $12,500 and a variable cost of $4 per bag, while the mechanized process will incur a monthly processing cost of $11,240 and a variable cost of $5 per bag. Both types of lettuce need unique degradable bags costing $1 per bag to Carrefour. Irrespective of the process used for production, the store sells lettuce at $10 per bag.

What is the breakeven volume for the manual process? Also, find the breakeven point in dollars.
What is the breakeven volume for the mechanized process? Also, find the breakeven point in dollars.
If the store expects to sell 5000 bags monthly, which process will be more profitable? Why?
At what sales volume does the manual process earn $5740 more than the mechanized process?
Find the sales volumes of processes that satisfy the following two conditions: sales of the manual process are 300 bags more than the mechanized and earn a profit of $7940 more than the mechanized.