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# Kristens Cookie Company Q1 One Dozen: 6 + 2 + 10 + 5 + 2 + 1 = 26 minutes Two Dozen: 6 + (2 x 2) + (10 x 2) + (5 x 2) + (2 x 2) + 1 = 45 minutes Three Dozen: 6 + (2 x 3) + (10 x 3) + (5 x 3) + (2 x 3) + 1 = 64 minutes Q2 One

Dozen: 240 minutes / 10 minutes = 24 orders Two dozen: 240 minutes / 20 minutes = 12 orders Three Dozen: 240 minutes / 30 minutes = 8 orders Q3 One Dozen: Your time, 8 minutes; Roommates time, 18 minutes Two Dozen: Your time, 10 minutes; Roommates time, 35 minutes Three Dozen: Your time, 12 minutes; Roommates time, 52 minutes Q4 Assumes your time and roommates time is worth \$0.20 per minute (\$12 per hour) and the variable cost per dozen is \$0.70: One Dozen Cost: (\$0.20 x 26) + (\$0.70 x 1 dozen) = \$5.90 Two Dozen Cost: (\$0.20 x 45 minutes) + (\$0.70 x 2 dozen) = \$10.40 or \$5.20 per dozen. You could offer a discount of up to \$0.70 per dozen which is the per-dozen decrease in variable costs when baking a two-dozen order. Three Dozen Cost: (\$0.20 x 64 minutes) + (\$0.70 x 3 dozen) = \$14.90 or \$4.97 per dozen. You could offer a discount of up to \$0.93 per dozen which is the per-dozen decrease in variable costs when baking a three-dozen order. Q5 Rush Order Flow Time (ROFT): Still 26 minutes? Bottleneck: Bake (10 minutes) Capacity: 240 / 10 = Still 24?

## Spoon Dough 2 min/dozen

Bake 10 min/dozen

Cool 5 min/dozen

Pack 2 min/dozen

Payment 1 minute

Sale Complete