Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pi
zza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $ 20 comma 000 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 $ 35 comma 000 and the variable costs are $ 1.25 per pizza. The pizzas sell for $ 14.00 each. a) The break-even point in units for oven type A =
nothing units (round your response to the nearest whole number).
The break-even point in units for oven type B =
nothing units (round your response to the nearest whole number).
b) If Janelle is expecting that the pizza shop is going to be able to sell 8 comma 000 pizzas, then she should select oven
▼
A or B (Equal Profit)
A
B
.
c) If Janelle is expecting that the pizza shop is going to be able to sell 13 comma 000 pizzas, then she should select oven
▼
A or B (Equal Profit)
A
B
.
d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent =
nothing pizzas
