​a) The​ break-even point in units for oven type A​ = _______ units ​(round your response to the nearest whole​ number). b) What is the break-even point for each oven? c) If the owner expects to sell 9,000 pizzas, which oven should she purchase?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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8. 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
$3.00
per pizza. Oven B is larger and can handle
40
pizzas an hour. The fixed costs associated with oven B are  
$32,500
and the variable costs are
$1.50
per pizza. The pizzas sell for
$15.00
each.
Part 2
​a) The​ break-even point in units for oven type A​ = _______
units ​(round your response to the nearest whole​ number).

b) What is the break-even point for each oven?

c) If the owner expects to sell 9,000 pizzas, which oven should she purchase?

d) If the owner expects to sell 12,000 pizzas, which oven should she purchase?

e) At what volume should Janelle switch ovens?

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The volume at which Oven A and Oven B have the same cost​ (crossover point) and Janelle would be indifferent​ =

enter your response here

pizzas ​(round your response to the nearest whole​ number).

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