Janelle Heinke, the owner of Ha’Peppas!, is considering a new oven in which to bake the firm’s signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $14 each.

a) What is the break-even point for each oven?

b) If the owner expects to sell 9,000 pizzas, which oven should she purchase?

c) If the owner expects to sell 12,000 pizzas, which oven should she purchase?

d) At what volume should Janelle switch ovens?

The Mach 10 is a one-person sailboat manufactured by Creative Leisure. The final assembly plant is in Cupertino, California. The assembly area is available for production of the Mach 10 for 200 minutes per day. (The rest of the time it is busy making other products.) The daily demand is 60 boats. Given the information in the table,

a) Draw the precedence diagram and assign tasks using five workstations.

b) What is the efficiency of the assembly line, using your answer to (a)?

c) What is the theoretical minimum number of workstations?

d) What is the idle time per boat produced?