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ontributePublish To Website Post Io Annual rental costs and operating costs Annual Capacity Costs vary with the size of the ovens. The ovens' capacities and
ontributePublish To Website Post Io Annual rental costs and operating costs Annual Capacity Costs vary with the size of the ovens. The ovens' capacities and costs are as follows Small Normal Big 35,000 110,000 200,000 10,000 5,000 27 000 Fixed Cost Per Pizza Costs Pizza Ingredients Dough costs (less dough needed in larger ovens) 0.13 0.22 0.08 0.43 0.11 0.14 0.08 0.33 0.09 0.05 0.07 0.21 1Variable Utilities and Energy Small Vs Normal Change in FC Change in Vc 5,000 0.10 Please calcu late the break-even (indifference) points between these three sizes Break Even Point 6 C oncept question: Should management lease the same type of oven and force every chain to use the same oven type? Explain why or why not? 29 0 What is the issue with the indifference point between Small vs Large? What would the actual indference be given the capacity constraints? 34 35 36 37 38 Cost BehavorMultple Product Break-even Relevant Costs-Special Order Pricing Fixed vs Variable Costs Ready
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