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a) the break-even point for oven type a is _____ the break-even point for oven type b is ______ b) if expected to sell 8,000
a) the break-even point for oven type a is _____ the break-even point for oven type b is ______
b) if expected to sell 8,000 pizzas she should select _____
c) if expected to sell 13,000 pizzas she should select _____
d) the volume at which type a and type would have the same cost (a crossover point) is ______
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 $35,000 and the variable costs are $1.50 per pizza. The pizzas sell for $15.00 each
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