zan azlett and Angela have joined forces to start a&z lettuce products, a processor of packaged shredded lettuce. Zan has years of food processing experience and Angela has food preparation experience. Together with the help from vendors they think that can adequately estimate demand, fixed costs, revenues and variable cost per 5 pound bag of lettuce. They thinks largely manual process will have monthly fixed costs of $37,500 and variable costs of $1.75 a bag. A more mechanized process will have fixed costs of $75,000 per month with variable costs of $1.25 per 5 pound bag. They expect to sell the lettuce for $2.50 per 5 pound bag.

1. what is the break even quantity for the manual process?
2. what is the revenue at the break even quantity for the manual process?
3. what is the break even quantity for the mechanized process?
4. what is the revenue at the break even quantity for the mechanized process?
5. what is the monthly profit or loss of the manual process if they expect to sell 60,000 bags of lettuce per month?
6. what is the monthly profit or loss of the mechanized process if they expect to sell 60,00 bags of lettuce per month?
7. at what quantity would they be indifferent to the process selected?
8. over what range of demand would the manual process be preferred over the mechanized process? Over what range of decade would the mechanized process be preferred over the manual process?