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Janelle Heinke, the owner of Ha\'Peppasl, is considering a new oven in which to

ID: 429050 • Letter: J

Question

Janelle Heinke, the owner of Ha'Peppasl, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 22 pizzas an hour. The fixed oosts associated with oven A are $20,000 and the variable costs are $2.00 pizza. Oven B is larger and can handle 44 costs are $1.00 per pizza. The pizzas sell for $12.00 each. pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable a) The break-even point in units for oven type A -2000 units (round your rosponse to the nearest wholo numbor). The break-even point in units for oven type B-2727 units (round your response to the nearest whole number). ) If Janelle is expecting that the pizza shop is going to be able to sell 8,000 pizzas, then she should select oven If Janelle is expecting that the pizza shop is going to be able to sell 13,000 pizzas, then she should select oven The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent-pizza ound your response to the nearest whole number). r your answer in the answer box and then click Check Answer.

Explanation / Answer

Answer:

Part a:

Part b:

Part c:

Part d:

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