Dino's Pizza in Manhattan is currently selling 1400 pizzas per week at an average of $12/pizza. Dino's average variable costs are $3.90/pizza (you can assume they are constant) and non- incremental fixed costs are 40% of current revenue. Dino's management suspects that de- mand would be stimulated by an across-the-board 5% price decrease on its pizzas, but is hesitating to implement this price cut because if sales exceeded 1500 pizzas per week they would need to buy an additional pizza oven and rearrange the shop to make room for it. The new oven would increase Dino's production capacity by approximately 750 pizzas per week. All of the costs involved in the new oven would add $210/week to the shop's fixed costs. (a) Dino's management calls you in as a pricing consultant to help them with this decision. They want to know whether they should go ahead and lower prices by 5% or not. What do you think? For full credit, conduct a break-even analysis for Dino's and explain what your findings mean. Assume for this part that Dino's sells pizza only (no other products). (b) Now suppose that Dino's also sells soda in addition to pizza, and that it is observed in the data that on average for every additional pizza sold Dino's gets an extra $1.50 in contribution margin from sales of additional soda. Redo the break-even analysis from part (a) and advise Dino's on whether they should go ahead with the price change