\\\\table[[B,C,D,

E

,

F

,G,

H

,1,J]]\ An Indian Food Truck is considering a new tandoor oven in which to bake naan. Tandoor A can handle 22 naan in an hour. The fixed costs associated with commercial grade tandoor A are

$2,000

and the variable costs are

$1.00

per naan. Oven B is larger and can handle 44 naan per hour. However, neither oven should be left on all day. The fixed costs associated with tandoor

B

are

$3,500

and the variable costs are

$.75

per naan. The naan sell for

$3.00

each.\ \\\\table[[,Tandoor Oven],[,A,B,],[# Naan/hour,,22,,44],[Fixed Cost,

$

,2,000,

$

,3,500],[Variable Cost,

$

,1.00,

$

,0.75],[Selling Price,

$

,3.00,

$

,3.00]]\ a. What is the breakeven point in for tandoori A and B? [Blank1]\ Oven A\ 1000\ 1555.5556\ Oven B\

51,555,56

\

$3,000.00

\ b. Which tandoor should be chosen if it is expected to make 10,000 naans each year? [Blank2]\ Oven B because it has a lower variable cost.\ c. A third option is to avoid the fixed cost altogether and but each unit al ready pre-made for

$1.50

. Assuming no quality concerns with the pre-made naan, which of the following is true? [Blank3]\ Tandoori A is preferred to Option 3 in the short term.\ Tandoori B is preferred to Option 3 in the short terms.\ Option 3 is preferred to either tandoori A or B up to 4,000 naan.\ If lowest cost in the goal, tandoori A and B is always preferred to buying the pre-made naan.

An Indian Food Truck is considering a new tandoor oven in which to bake naan. Tandoor A can handle 22 naan in an hour. The fixed costs associated with commercial grade tandoor A are $2,000 and the variable costs are $1,00 per naan. Oven B is larger and can handle 44 naan per hour. However, neither oven should be left on all day. The fixed costs associated with tandoor B are $3,500 and the variable costs are $.75 per naan. The naan sell for $3.00 each. a. What is the breakeven point in for tandoori A and B? [Blank1] Oven A 1555.5556 $3,000.00 b. Which tandoor should be chosen if it is expected to make 10,000 naans each year? [Blank2] it has a lower variable cost. c. A third option is to avoid the fixed cost altogether and but each unit already pre-made for $1.50. Assuming no quality concerns with the pre-made naan, which of the following is true? [Blank3]