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The local restaurant Lubyanka specializes in traditional dumplings. Currently, its process makes ready-to-eat dumplings, fully cooked, for the customer. This process has a fixed cost of $20,000, and a variable cost of $2.50 per portion. The owner is considering a different process that can make dumplings in two ways: completely cooked (as before), or assembled and then flash frozen for the customer to finish heating at home. This alternate process has a fixed cost of $26,000, but a lower variable cost (because much less energy is used in preparation) of $1.75 per portion a. What is the crossover point between the existing process and the proposed process? b If the owner expects to sell 10,000 portions, should he get the new oven?
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