In problem 20, the production process for making pizzas that Benny’s Big Slice Pizza uses is very labor intensive. Benny is considering a more automated process design that requires the purchase of additional equipment that will increase annual fixed costs by $4,000 annually, and reduce the variable cost to $3.84 per pizza. What is the approximate volume of pizza slices that will make Benny indifferent between the old and new processes? Should Benny use the old labor-intensive process or the process with new equipment?

Data From Problem 20 

A university student, Benny Orsini, is planning to open a walk-in pizza restaurant near campus that he will call Benny’s Big Slice Pizza. He will have limited 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 including ingredients and labor to make a pizza is $5.36. If Benny plans to sells pizza slices for $3.75 apiece, and one pizza has 8 slices, how many slices will he need to sell to break even? If Benny forecasts demand to be 540 slices per week, how much annual profit will he make?