The Local Convenience Store Makes Personal Sized Pizzas

question 8

Essay

The local convenience store makes personal sized pizzas.Currently,its process makes complete pizzas,fully cooked,for the customer.This process has a fixed cost of $20,000,and a variable cost of $1.75 per pizza.The owner is considering a different process that can make pizzas in two ways: completely cooked (as before),or partially cooked and then flash frozen for the customer to finish heating at home.This alternate process has a fixed cost of $24,000,but a lower variable cost (because much less energy is used in baking)of $1.25 per pizza.
a.What is the crossover point between the existing process and the proposed process?
b.If the owner expects to sell 9,000 pizzas,should he get the new oven?

Understand the allocation of profits and losses in partnerships, including special allocations for salaries, interest, and service hours.

Identify different types of partnerships and their characteristics, including liability exposure for partners.

Understand the importance and implications of the Articles of Partnership.

Recognize the circumstances that lead to the dissolution of a partnership.

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Definitions:

Identify And Reply

The process of recognizing a message or request and providing a corresponding response.

Body Language

Involves the use of physical behavior, expressions, and mannerisms to communicate nonverbally, often reflecting the speaker’s feelings and attitudes.

Face-To-Face Communication

direct interaction between individuals that occurs in person, allowing for immediate feedback.

Impact

The significant influence or effect that an action, decision, or event has on individuals, systems, or environments.