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Break-even point in units for oven

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Reference no: EM132813492

Janelle? Heinke, the owner of? Ha'Peppas!, is considering a new oven in which to bake the? firm's signature? dish, vegetarian pizza. the Oven type A can handle 22 pizzas an hour. The fixed costs associated with oven A are $22,500 and the variable costs are $2.50 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associated with oven B are $32,500 and the variable costs are $1.25 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).

B) The? break-even point in units for oven type B? = __ units ?(round your response to the nearest whole? number).

C) if Janelle is expecting that the pizza shop is going to be able to sell 8,000 ?pizzas, then she should select oven?

D) If Janelle is expecting that the pizza shop is going to be able to sell 14,000 ?pizzas, then she should select oven

E) 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).

Reference no: EM132813492

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