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 $2.50 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.00 per pizza. The pizzas sell for $12.00 each. a) The break-even point in units for oven type A = 2105 units (round your response to the nearest whole number). The break-even point in units for oven type B = 2727 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 8,000 pizzas, then she should select oven B c) If Janelle is expecting that the pizza shop is going to be able to sell 14,000 pizzas, then she should select oven B d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent = pizzas (round your response to the nearest whole number).

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 $2.50 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.00 per pizza. The pizzas sell for $12.00 each. a) The break-even point in units for oven type A = 2105 units (round your response to the nearest whole number). The break-even point in units for oven type B = 2727 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 8,000 pizzas, then she should select oven B c) If Janelle is expecting that the pizza shop is going to be able to sell 14,000 pizzas, then she should select oven B d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent = pizzas (round your response to the nearest whole number).

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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