Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The local convenience store makes personal pan pizzas. Currently, their oven has a fixed cost of $3000 per month and a variable cost of $0.50

The local convenience store makes personal pan pizzas. Currently, their oven has a fixed cost of $3000 per month and a variable cost of $0.50 per pizza. Pizzas currently sell for $5.00 each. The owner is considering a brick oven. It has a fixed cost of $6000 per month and a variable cost of $0.50 per pizza. Since brick oven cooked pizzas are the latest trend, the owner will be able to charge $6.00 per pizza.

a) If the owner expects to sell 7000 pizzas per month, should she get the new oven? Show your work.

b) For what range of volume of pizzas per month is the brick oven preferred over the current oven?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

First Course In Mathematical Logic

Authors: Patrick Suppes, Shirley Hill

1st Edition

0486150941, 9780486150949

More Books

Students also viewed these Mathematics questions

Question

8. What values do you want others to associate you with?

Answered: 1 week ago