Your company thinks it will sell 5000 pizzas per year and is considering two different locations. Location A has fixed cost of $100,00 and a variable cost if $4 per pizza. Location B has a higher fixed cost of $125,000, but more efficient facilities that reduces the variable cost to $3 per pizza. if each pizza sells for $8 then:
A. what location should be selected using break even method?
B. what is the point of indifference? (how many pizza must be sold for eacg location to be wqual in cost?)