Question: A) What is the break even point for each oven? B) If the owner expects to sell 9000 pizzas, which oven should she purchase? C)
A) What is the break even point for each oven?
B) If the owner expects to sell 9000 pizzas, which oven should she purchase?
C) If the owner expects to sell 14,000 pizzas, which oven should she purchase?
D) At what volume should Janelle switch ovens?
Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 24 pizzas an hour. The fixed costs associated with oven A are $25,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.00 per pizza. The pizzas sell for $12.00 each. a) The break-even point in units for oven type A = units (round your response to the nearest whole number)Step by Step Solution
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