Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $20,000 and the variable costs are $3.00 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 $1.00 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). units (round your response to the nearest whole number). The break-even point in units for oven type B = b) If Janelle is expecting that the pizza shop is going to be able to sell 10,000 pizzas, then she should select oven c) If Janelle is expecting that the pizza shop is going to be able to sell 14,000 pizzas, then she should select oven A or B (Equal Profit) B d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent = pizzas (round your response to the nearest whole number). 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 $20,000 and the variable costs are $3.00 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 $1.00 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). units (round your response to the nearest whole number). The break-even point in units for oven type B = b) If Janelle is expecting that the pizza shop is going to be able to sell 10,000 pizzas, then she should select oven c) If Janelle is expecting that the pizza shop is going to be able to sell 14,000 pizzas, then she should select oven A or B (Equal Profit) B d) The volume at which Oven A and Oven B have the same cost (crossover point) and Janelle would be indifferent = pizzas (round your response to the nearest whole number).
Expert Answer:
Answer rating: 100% (QA)
To calculate the breakeven point in units for oven types A and B we need to determine the point at which the total revenue equals the total cost a Bre... View the full answer
Related Book For
Posted Date:
Students also viewed these general management questions
-
Janelle Heinke, the owner of HaPeppas!, is considering a new oven in which to bake the firms signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Upon oxidation of one molecule of pyruvate by mitochondria, the number of ATP generated are (a) 38 (b) 30 (c) 8 (d) 15
-
Jane Bahr, a controller of Endicott & Thurston, prepared the following balance sheets at the end of 2019 and 2018: Endicott & Thurston Associates Balance Sheets December 31, 2019 and 2018 Additional...
-
Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching- board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed....
-
The probabilities that a TV station will receive \(0,1,2,3, \ldots, 8\) or at least 9 complaints after showing a controversial program are, respectively,...
-
Og is the leader of the surprisingly mathematically advanced, though technologically run-of-the-mill, Calm Waters caveman tribe. He must decide on the number of stone clubs and stone axes to be...
-
The Fielding Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year. (Click the icon...
-
Consider the state diagrams of Figure 12.28. a. Describe the behavior of each. b. Compare these with the branch prediction state diagram in Section 12.4. Discuss the relative merits of each of the...
-
The most energy-rich nutrient is: O carbohydrate fat Ofiber water O protein
-
When market price is above equilibrium price, the market price will be driven ______. a) up by unhappy buyers b) up by unhappy sellers c) down by unhappy buyers d) down by unhappy sellers
-
When output is zero , fixed cost is and variable cost is _______. a) zero , zero b) zero, more than zero c) more than zero, zero d) more than zero, more than zero.
-
The perfect competitor operates at the ____________ point of her average total cost curve in the long run.
-
A decrease in supply can be brought about by _________. a) a price increase b) a price decrease c) a random event like a hurricane or an earthquake d) a change in consumers tastes or preferences
-
Why is a business firm never in the long run?
-
There has been heavy criticism of the IC largely focused on domestic intelligence collection. In July 2013, the U.K. Guardian newspapers Glenn Greenwald showed a 2008 NSA PowerPoint presentation...
-
The slopes of the tangents at the points where the curve y = x2 - 4x intersects the X-axis is 1) 1 2) +2 3) +3 4) +4
-
Palmer Cheese Company is a small manufacturer of several different cheese products. One product is a cheese spread sold to retail outlets. Susan Palmer must decide how many cases of cheese spread to...
-
Why might a manager be forced to use simulation instead of an analytical model in dealing with a problem of (a) Inventory ordering policy? (b) Ships docking in a port to unload? (c) Bank teller...
-
What is the difference between a dependent and an independent variable?
-
You are setting up a chatbot agency to service marketing, sales and customer services teams. Discuss the advantages and disadvantages of setting up the business as a sole trader or company and the...
-
Principles for Responsible Management Education (PRME) is a not-for-profit entity. It engages business schools to ensure they provide future leaders with the skills needed to balance economic and...
-
Discuss why the cash received from providing a service is revenue, yet the cash contributed by the owner is not revenue.
Study smarter with the SolutionInn App