Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the...

 

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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 $20,000 and the variable costs are $3.00 per pizza. Oven B is larger and can handle 44 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 $14.00 each. a) The break-even point in units for oven type A = units (round your response to the nearest whole number). units (round your response to the nearest whole number). The break-even point in units for oven type B = b) If Janelle is expecting that the pizza shop is going to be able to sell 10,000 pizzas, then she should select oven c) If Janelle is expecting that the pizza shop is going to be able to sell 14,000 pizzas, then she should select oven A or B (Equal Profit) B d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent = pizzas (round your response to the nearest whole number). 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 $20,000 and the variable costs are $3.00 per pizza. Oven B is larger and can handle 44 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 $14.00 each. a) The break-even point in units for oven type A = units (round your response to the nearest whole number). units (round your response to the nearest whole number). The break-even point in units for oven type B = b) If Janelle is expecting that the pizza shop is going to be able to sell 10,000 pizzas, then she should select oven c) If Janelle is expecting that the pizza shop is going to be able to sell 14,000 pizzas, then she should select oven A or B (Equal Profit) B d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent = pizzas (round your response to the nearest whole number).

Answer rating: 100% (QA)

To calculate the breakeven point in units for oven types A and B we need to determine the point at which the total revenue equals the total cost a Bre... View the full answer