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Question 1 Janelle Heinke, the owner of "Pappas Pizza" is considering a new oven in which to bake the firm's signature dish, a vegetarian pizza. Oven type “A" can handle 20 pizzas an hour. The fixed costs associated with oven "A" are $20,000 and the variable cost are $2.00 per pizza. Oven "B" is larger and can handle 40 pizza per hour. The fixed costs associated with oven "B" are $30,000 and the variable cost is $1.25 per pizza. The pizzas sell for $14 each. a. What is the breakeven point for each oven? b. If the owner expects to sell 9,000 pizzas, which oven should she purchase? c. At what volume should Janelle switch ovens?

Question 1 Janelle Heinke, the owner of "Pappas Pizza" is considering a new oven in which to bake the firm's signature dish, a vegetarian pizza. Oven type “A" can handle 20 pizzas an hour. The fixed costs associated with oven "A" are $20,000 and the variable cost are $2.00 per pizza. Oven "B" is larger and can handle 40 pizza per hour. The fixed costs associated with oven "B" are $30,000 and the variable cost is $1.25 per pizza. The pizzas sell for $14 each. a. What is the breakeven point for each oven? b. If the owner expects to sell 9,000 pizzas, which oven should she purchase? c. At what volume should Janelle switch ovens?

Elements Of Electromagnetics
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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Question 1 Janelle Heinke, the owner of “Pappas Pizza" is considering a new oven in which to bake the firm's signature dish, a vegetarian pizza. Oven type "A" can handle 20 pizzas an hour. The fixed costs associated with oven “A" are $20,000 and the variable cost are $2.00 per pizza. Oven “B" is larger and can handle 40 pizza per hour. The fixed costs associated with oven "B" are $30,000 and the variable cost is $1.25 per pizza. The pizzas sell for $14 each. a. What is the breakeven point for each oven? b. If the owner expects to sell 9,000 pizzas, which oven should she purchase? c. At what volume should Janelle switch ovens?
Transcribed Image Text:Question 1 Janelle Heinke, the owner of “Pappas Pizza" is considering a new oven in which to bake the firm's signature dish, a vegetarian pizza. Oven type "A" can handle 20 pizzas an hour. The fixed costs associated with oven “A" are $20,000 and the variable cost are $2.00 per pizza. Oven “B" is larger and can handle 40 pizza per hour. The fixed costs associated with oven "B" are $30,000 and the variable cost is $1.25 per pizza. The pizzas sell for $14 each. a. What is the breakeven point for each oven? b. If the owner expects to sell 9,000 pizzas, which oven should she purchase? c. At what volume should Janelle switch ovens?
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