A Large Hotel and Casino in Las Vegas Is Currently

question 79

Essay

A large hotel and casino in Las Vegas is currently under construction. There will be an Italian restaurant in the hotel that will serve pizza. Management is trying to decide whether to make the pizza themselves or buy it frozen and simply heat it to customer order. There are two major sources of commercial-grade frozen pizza: Ma Ma's Products and the Chun-Yee Corporation. If they make the pizza themselves, a substantial amount of preparation equipment will be required, along with skilled personnel. Frozen pizza needs either a conventional oven (Ma Ma's) or a microwave (Chun-Yee). Financial data is as shown below (variable costs are estimated based on an average pizza purchase):
$\begin{array}{|l|c|c|}\hline \text { Source } & \text { Fixed Cost/year } & \text { Variable Cost } \\\hline \text { Make in-house } & \$ 7,870 & \$ 3.20 \\\hline \text { Ma Ma's } & \$ 860 & \$ 5.60 \\\hline \text { Chun-Yee } & \$ 2,460 & \$ 4.50 \\\hline\end{array}$
a.At what volume is either Ma Ma's or Chun-Yee acceptable?
b.At what volume is the company indifferent to either Chun-Yee or make in-house?

Understand the importance of prevention and early intervention in mental health.

Acknowledge the contributions of notable historical figures to the field of abnormal psychology and mental health.

Understand the significance of research and evidence-based practice in advancing the field of mental health.

Understand the key differences between various mental health professionals.

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Definitions:

Noncumulative Preferred Stock

A type of preferred stock where dividend payments are not required to be paid in periods when they are not declared.

Dividends Received

The payments a shareholder receives from a company out of its profits or reserves as a return on the shareholder's investment.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Cash Dividend

A financial distribution from a firm's profits to its investors, typically provided as cash.