Kirstin Is Thinking About Opening a Chinese Restaurant and Needs

question 13

Essay

Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker.Machine A has fixed costs of $100 and variable costs of $1/pound.Machine B has fixed costs of $500 and variable costs of $.1/pound.If Kirstin plans to sell 100 pounds of rice,which machine should she choose? What is the cross-over point?

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Definitions:

Peak Periods

Times of maximum activity, demand, or use, typically stressing the capacity, resources, or systems involved.