1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aloiza [94]
3 years ago
8

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 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $14 each.
a) What is the break-even point for each oven?

b) If the owner expects to sell 9,000 pizzas, which oven should she purchase?

c) If the owner expects to sell 12,000 pizzas, which oven should she purchase?

d) At what volume should Janelle switch ovens?
Business
1 answer:
NikAS [45]3 years ago
7 0

Answer:

a) Oven A  = 1,667; Oven B = 2,353 pizzas.

b) Oven A

c) Oven A

d) 13,334 pizzas

Explanation:

Since nothing was mentioned regarding her time availability, the capacity of each oven will not be taken into account.

The income equation for ovens A and B, respectively, are:

A=(14-2)x-20,000\\B=(14-1.25)x-30,000

Where 'x' is the number of pizzas sold.

a) The break-even occurs when income is zero:

A=0=(14-2)x-20,000\\x_A=1,666.66\\B=(14-1.25)x-30,000\\x_B=2,352.94

Rounding up to the next whole pizza, the break-even for oven A is 1,667 pizzas and for oven B it is 2,353 pizzas.

b) For x = 9,000:

A=(14-2)*9,000-20,000\\A=\$88,000\\B=(14-1.25)*9,000-30,000\\B=\$84,750

Income is greater with oven A, so Janelle should use oven A.

c) For x = 12,000

A=(14-2)*12,000-20,000\\A=\$124,000\\B=(14-1.25)*12,000-30,000\\B=\$123,000

Income is greater with oven A, so Janelle should use oven A.

d) She should switch ovens at the value for 'x' that causes B to be greater than A:

A

Rounding up to the next whole pizza, she should switch ovens at a volume of 13,334 pizzas.

You might be interested in
) Offensive strategic moves involve all of the following except 38) A) pursuing continuous product innovation to draw sales and
Nesterboy [21]

Explanation:

hi Jessica you are pretty

8 0
3 years ago
Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Go
Aleksandr [31]

Answer:c. Both Copper Corporation and Gold Corporation.

Explanation:Cash accounting is an accounting method in which payment receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.

Generally, a small business can use either the overall cash method of accounting or an overall accrual method of accounting. ... The overall cash method of accounting is available for S corporations, partnerships that do not have a C corporation as a partner, and personal service corporations (PSCs).

4 0
3 years ago
Read 2 more answers
What recent StuffDot actions have added to its user-friendliness
8090 [49]

Answer:

In simple words,  The stuffdot recently undergone several measures to render it app friendlier. Both systems, whether browsers or Android or iOs, have the same functionality introduced through stuffdot. The app will now utilise stuffdot wherever, every time.

We also now introduced additional categories of apps such as store page, browse stores, and offers on dotting as well as incentive status that are categorised into lifelong, uncollected, and existing incentives. Thus all these additional versions made this same stuffdot user-friendlier.

5 0
3 years ago
Vital Industries manufactured​ 2,400 units of its product Huge in the month of April. It incurred a total cost of​ $132,000 duri
jarptica [38.1K]
The answer is C. $39☺️
4 0
3 years ago
Read 2 more answers
E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
Sever21 [200]

Answer:

You would pay approximately $35.00 today

Explanation:

The cost of the stock at the beginning of the year 20

= 20/9.75%

= 20/0.0975

= 205.13 dollars

We find the current price of the stock

= Fv/(1+r)^n

= 205.13/(1+9.75%)¹⁹

= 205.13/1.0975¹⁹

= 205.13/5.86

= $35.00

From this calculation you have to pay 35 Dollars today.

5 0
2 years ago
Other questions:
  • The commission may deny an application for any license and may refuse to accept a report of appointment if
    7·1 answer
  • A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value
    13·1 answer
  • Perhaps the most successful government agency during this time was the food administration run by
    7·1 answer
  • At year end, CurlZ Inc.'s inventory consists of 100 bottles of CleanZ with a cost of $1, and a selling price of $0.80 per bottle
    5·1 answer
  • Bill lives in montana and likes to grow zucchini. he applies fertilizer to his crops twice during the growing season and notices
    6·1 answer
  • Just-in-time management could be best defined in which of the following ways?Select one of the options below as your answer. A.
    9·1 answer
  • Explain one way an entrepreneur might identify a new business idea
    15·1 answer
  • bartleby Clayborn Corporation's net cash provided by operating activities was $118,800; its net income was $106,100; its income
    13·1 answer
  • Co-branding is a strategy used in which of the following types of partnerships?
    6·2 answers
  • Once production is completed in all processing departments, production costs are transferred to ______.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!