Assignment Task:
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 24 pizzas an hour. The fixed costs associated with oven A are $22,500 and the variable costs are $2.50 per pizza. Oven B is larger and can handle 44 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.50 per pizza. The pizzas sell for $12.00 each
Part A) What is the? break-even point in units for Oven Type A?
Part B) What is the? break-even point in units for Oven Type B?
?Part C) If Janelle is expecting that the pizza shop is going to be able to sell 9,000 pizzas, then she should select oven... (B/A/ A or B bc it is equal profit)