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The manager of a fast-food restaurant featuring hamburgers is adding salads to the menu. If they choose to include a salad bar (i.e., the MAKE option), it will cost $14,000 in annual fixed costs for the leased equipment and added employee, and $1 per salad variable cost. If they choose to have pre-made salads (i.e., the BUY option), it will cost $3 per salad. + 7a) What is the make or buy quantity (i.e., the breakeven point between making vs. buying)? 7b) What decision should the manager make regarding the salad bar if the manager expects to sell 7,500 salads per year?

The manager of a fast-food restaurant featuring hamburgers is adding salads to the menu. If they choose to include a salad bar (i.e., the MAKE option), it will cost $14,000 in annual fixed costs for the leased equipment and added employee, and $1 per salad variable cost. If they choose to have pre-made salads (i.e., the BUY option), it will cost $3 per salad. + 7a) What is the make or buy quantity (i.e., the breakeven point between making vs. buying)? 7b) What decision should the manager make regarding the salad bar if the manager expects to sell 7,500 salads per year?

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter2: Equations, Inequalities, And Problem Solving
Section2.3: Equations Involving Decimals And Problem Solving
Problem 65PS
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6b) Which plan should the student choose if she expects to eat 15 meals per month at the cafeteria? 7. The manager of a fast-food restaurant featuring hamburgers is adding salads to the menu. If they choose to include a salad bar (i.e., the MAKE option), it will cost $14,000 in annual fixed costs for the leased equipment and added employee, and $1 per salad variable cost. If they choose to have pre-made salads (i.e., the BUY option), it will cost $3 per salad. 7a) What is the make or buy quantity (i.e., the breakeven point between making vs. buying)? 7b) What decision should the manager make regarding the salad bar if the manager expects to sell 7,500 salads per year? tab lock ! 1 Q A @ 2 W S 20 # 3 E D $ 4 20 R % 5 F T < 6 A Y & 7 G H # 00 U 8 ( 9 1 J K -0 P
Transcribed Image Text:6b) Which plan should the student choose if she expects to eat 15 meals per month at the cafeteria? 7. The manager of a fast-food restaurant featuring hamburgers is adding salads to the menu. If they choose to include a salad bar (i.e., the MAKE option), it will cost $14,000 in annual fixed costs for the leased equipment and added employee, and $1 per salad variable cost. If they choose to have pre-made salads (i.e., the BUY option), it will cost $3 per salad. 7a) What is the make or buy quantity (i.e., the breakeven point between making vs. buying)? 7b) What decision should the manager make regarding the salad bar if the manager expects to sell 7,500 salads per year? tab lock ! 1 Q A @ 2 W S 20 # 3 E D $ 4 20 R % 5 F T < 6 A Y & 7 G H # 00 U 8 ( 9 1 J K -0 P
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