Answer:
Check the explanation
Explanation:
Please the answer to this question is in the attached file
You can confirm the answer by planning income statement with the calculated amount of unit so that whenever you’re through with the calculation, you must get an income figure of 240000. As the amount of units are in decimal so +/- of small number could be possible like you will get the operating income of 240005 if you put 13077 units .
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:
Where 'x' is the number of pizzas sold.
a) The break-even occurs when income is zero:
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:
Income is greater with oven A, so Janelle should use oven A.
c) For x = 12,000
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:
Rounding up to the next whole pizza, she should switch ovens at a volume of 13,334 pizzas.