What location should be selected using break even method

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Reference no: EM13904736

Your company thinks it will sell 5000 pizzas per year and is considering two different locations. Location A has fixed cost of $100,00 and a variable cost if $4 per pizza. Location B has a higher fixed cost of $125,000, but more efficient facilities that reduces the variable cost to $3 per pizza. if each pizza sells for $8 then:

A. what location should be selected using break even method?

B. what is the point of indifference? (how many pizza must be sold for eacg location to be wqual in cost?)

Reference no: EM13904736

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