Pesto Restaurant must decide between two types of technology in its kitchen. Option A is to use an induction oven process with a fixed cost of

$20,000 and a variable cost of $6.51 per meal.

Option B is to use a gas-fired oven process with a fixed cost of $12,000 and a variable cost of

$7.86 per meal. The average selling price per meal is $18.60.

a. What is the break-even quantity?

b. If the restaurant manager expects to sell 1,500 meals, which option, A or B, is best? Justify.