Question

An Indian Food Truck is considering a new tandoori oven in which to bake naan. Tandoor A can handle 22 naan in an hour. The fixed costs associated with commercial grade tandoori A are $ 2,000 and the variable costs are $1.00 per naan. Oven B is larger and can handle 44 naan per hour. However, neither oven should be left on all day. The fixed costs associated with tandoori B are $3,500 and the variable costs are $ .75 per naan. The naan sell for $3.00 each.
Required:
a. What is the breakeven point in for tandoori A and B?
b. Which tandoori should be chosen if it is expected to make thousands of naan each year?

Answer 1

Answer:

24 dollars

Explanation:

ΔABC ~ ΔEFD

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