The local convenience store makes personal pan pizzas. Currently, their oven can produce 50 pizzas per hour. It has a fiixed cost of $2,000, and a variable cost of $0.25 per pizza. The owner is considering a bigger oven that can make 75 pizzas per hour. It has a fixed cost of $3,000, but a variable cost of $0.20 per pizza. The price per pizza is $5.

1. The current break-even points in units is:

2. The current break-even point in dollars is:

3. The new break-even point in units will be:

4. The new break-even point in dollars will be:

5. If the owner expects to sell 9,000 pizzas and changes the oven, will profit change? If so, by how much?

Answer rating: 100% (QA)

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