PS.52 The Station, a boutique cookie company, needs to create a production process for its new cinnamon malt ball cookies. To help accomplish this, thecompany has put together some numbers for production costs (per dozen cookies for the variable costs).Process TypeFixed CostsLabor CostsMaterial CostsPre-Bake$169$1.89$0.62Easy Bake$469$1.41$0.51Speed Bake$774$1.35$0.51The Station estimates demand for the semester will be 620 dozen cinnamon malt ball cookies. Due to the cookies' expected popularity the selling price will be$5.25 per dozen.Based on the projected demand (volume) for the semester, which process type should they select?Speed BakePre-BakeEasy BakeUnder this process type-the one selected in the previous question-what would be their profits for the semester? (Display your answer to the nearest wholenumber).1596What would be the break-even point (in unit volume or demand) between the process option you selected above and the "Speed Bake" process option?(Display your answer to the nearest whole number).5083For a unit volume (or demand level) that is EXACTLY equal to the UNROUNDED break-even point (derived in the previous question), what would be the totalcost? (Display your answer to the nearest whole number).HINT: When using the break-even point derived in the previous question, be sure to NOT use it as a rounded number. Instead, be sure to include the exactbreak-even point, including any digits after the decimal, in order to get the correct total cost. If necessary, use direct cell referencing to ensure the correctbreak-even point is used.0455 For a unit volume (or demand level) that is EXACTLY equal to the UNROUNDED break-even point (derived in the previous question), what would be the totalcost? (Display your answer to the nearest whole number).HINT: When using the break-even point derived in the previous question, be sure to NOT use it as a rounded number. Instead, be sure to include the exactbreak-even point, including any digits after the decimal, in order to get the correct total cost. If necessary, use direct cell referencing to ensure the correctbreak-even point is used.9455For a volume that is 5 units greater than the break-even point (derived in the previous two questions), which process option would be best?Speed BakePre-BakeEasy Bake

Break-even is the point in a business where the profits are equal to the costs.

Answered: The Station estimates demand for the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section12.5: Analytic Steady-state Queueing Models

Problem 13P

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