management science and information system
a distributor of pre-washed shredded lettuce is opening a new plant and considering whether to use a mechanized process or manual process tp prepare the product. The manual process will have a fixed cost of 43,400 per month and a variable cost $1.80 per 5 pound bag. the mechanized process would have a fixed cost $84,600 per month and a variable cost of $1.30 per bag. the company expects to sell each bag of shredded lettuce for $2.50.
a} find the break even point for each process
b}what is the monthly profit or loss if the company chooses the manual process and sells 70,000 bags per month.
please use excel to answer the question.