Assumption –

 The product is of one type

 There is only one baking tray
 They only produce cookies of one flavor

1. To file a rush order, we’ll need a minimum of 26 minutes

2. For four hour with a single tray we can fulfill 14.56 or 14 full orders
3. To fill each order me and my roommate each of us have to provide 26 minutes
4. As of now we’ll need 2 trays and 1 single oven
5. The actions that can be considered are –

 We can increase the production working hours by 7 minutes so that we can produce
whole dozen of cookie (working with whatever is already there).
 With increasing 1 tray we can save 7 minutes while increasing our production to
25.11 this will only
 Asking for online payment or prepaid order will eliminate the 1 minute used in every
transaction saving us 15 minutes (1 tray) or 25 minutes (2 tray).
 Division of work between the partner can be done systematically, as of now the
roommates work starts from cooling to payment which is 8 minutes & the rest 18
minutes she is ideal.

Proper Allocation Can Be –

 Increasing rinsing bowl so that we can prepare variety of flavor’s of cookies, which
will help us make better cookies
 The last thing we can do is to ask everyone for prepaid orders so that we can prepare
accordingly and also to attract them we can give additional discount, this won’t effect
our cost.
 Adding an oven will only be beneficial if our business is above break even point i.e.
having profit.

Cost of production of 1 pack = cost or ingredients + cost of box + cost of time

= $60 + ($0.10)
= $60.10
We are producing 14.46 in first case

$60.10*$14.56 = $75.056

For 2nd case we have 25.11 packs

$60.10*$25.11 = $1509.11

To rent an oven we cannot say what amount can be paid as we do not know how much profit they are
earning or will be earning