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Taj Bakery wants to increase its capacity by adding a new oven. The bakery is considering two models of oven: Alpha and Beta. The fixed
Taj Bakery wants to increase its capacity by adding a new oven. The bakery is considering two models of oven: Alpha and Beta. The fixed cost for Alpha model is $90,000 and for Beta model $75,000. The variable cost for Alpha oven is $15.00 bread tray it bakes and for Beta, $18.00 per bread tray baked. Regardless of which oven bakes the bread, each tray is sold for $21 and the projected market demand is 5000 trays. Which model would generate better profit for the bakery? Question 30 options: Both model Alpha or model Beta Model Beta Either model Alpha or model Beta Nither model Alpha or model Beta Model Alpha
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