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 22 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $3.00 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associate with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $12.00 each. a) The break-even point in units for oven type A = The break-even point in units for oven type B = b) If Janelle is expecting that the pizza shop is going to be able to sell 8,000 pizzas, then she should select oven units (round your response to the nearest whole number). units (round your response to the nearest whole number). c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven
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 22 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $3.00 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associate with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $12.00 each. a) The break-even point in units for oven type A = The break-even point in units for oven type B = b) If Janelle is expecting that the pizza shop is going to be able to sell 8,000 pizzas, then she should select oven units (round your response to the nearest whole number). units (round your response to the nearest whole number). c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 42P
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![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 22 pizzas an hour. The fixed costs associated with oven A are $20,000 and
the variable costs are $3.00 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 $1.25 per pizza. The pizzas sell for $12.00 each.
a) The break-even point in units for oven type A = units (round your response to the nearest whole number).
The break-even point in units for oven type B = 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
c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven
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).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3517a636-28f2-4637-952d-db251517ee09%2Fef61323f-292d-4bfb-acd7-c2ba246dc291%2Fx2ofn9q_processed.png&w=3840&q=75)
Transcribed Image Text: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 22 pizzas an hour. The fixed costs associated with oven A are $20,000 and
the variable costs are $3.00 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 $1.25 per pizza. The pizzas sell for $12.00 each.
a) The break-even point in units for oven type A = units (round your response to the nearest whole number).
The break-even point in units for oven type B = 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
c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven
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).
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