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Janelle Hinke, the owner of Barton Pizza, is considering a new oven in which to bake the firm's signature dish, oven baked - pepperoni Pizza.
Janelle Hinke, the owner of Barton Pizza, is considering a new oven in which to bake the firm's signature dish, oven baked - pepperoni Pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven type B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $14 each. 1. What is the break-even point for each oven? 2. If Janelle expect to sell 7,000 pepperoni pizza annually and want to make a $10,000 profit in a year with this oven A, what is the expected price per pizza? 3. If the owner expect to sell 9,000 pizzas annually at $14, which oven should she purchase? 4. At wat volume should Janelle switch ovens
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