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 $2.00 per pizza. Oven B is larger and can handle 40 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 $14.00 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 sell 9,000 pizzas then she should select oven___
If Janelle is expecting that the pizza shop is going to sell 13,000 pizzas then she should select oven___
c) The volume at which over A and over B have the same cost (crossover point) and Janelle would be indifferent =___pizzas
(round your response to the nearest whole number)