A university student is planning to open a walk-in pizza restaurant near campus. He will have no seating and will sell two kinds of oversized slices of pizza to go, plain cheese and pepperoni. The fixed annual cost including rent and equipment is $26,000 and the variable cost per slice is $0.67. If they sell slices for $3.75, how many slices will they need to sell to break even? If they forecast demand to be 540 slices per week, how much profit will they make?

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?