Solution-At what quantity do the two ovens have equal costs

At what quantity do the two ovens have equal costs

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Reference no: EM132896776

Question - The local convenience store makes personal pizzas. Currently, their oven can produce 100 pizzas per hour. It has a fixed cost of $3,000, and a variable cost of $0.35 per pizza. The owner is considering a bigger oven that can make 150 pizzas per hour. It has a fixed cost of $4,500, but a variable cost of $0.20 per pizza.

Required -

a) At what quantity do the two ovens have equal costs?

b) If the owner expects to sell 11,000 pizzas, should he get the new oven?

Reference no: EM132896776

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At what quantity do the two ovens have equal costs

Reference no: EM132896776

Reference no: EM132896776

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