Dominos is planning to introduce two new pizzas (Cauliflower and Calamari). Financial data related to producing these two new pizzas are summarized in the table below. a. If these two new pizzas are sold such that the ratio of Cauliflowers over Calamaris is 4:3, what is the break-even point? b. If the product mix has changed to five Cauliflowers to five Calamaris, what would happen to the break-even point? c. In order to maximize the profit, which product mix should be pushed?
Dominos is planning to introduce two new pizzas (Cauliflower and Calamari). Financial data related to producing these two new pizzas are summarized in the table below.
a. If these two new pizzas are sold such that the ratio of Cauliflowers over Calamaris is 4:3, what is the break-even point?
b. If the product mix has changed to five Cauliflowers to five Calamaris, what would happen to the break-even point?
c. In order to maximize the profit, which product mix should be pushed?
d. If both pizzas must go through the same oven and there are only 30,000 oven hours available per period, which product should be pushed to market? Assume that Cauliflower pizza takes 30 minutes and Calamari pizza takes 15 minutes in the oven.
| Cauliflower Pizza | Calamari Pizza | |
| Selling Price | $10 | $12 |
| Variable Costs | $5 | $10 |
| Fixed Costs | $2,000 | $600 |
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