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You don't need all the previous parts to the case to solve this. Go back to Part #1 of the case. Determine the number of

You don't need all the previous parts to the case to solve this.

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Go back to Part #1 of the case. Determine the number of pizza's she can expect to sell in 2021. (Average cost per pizza of $25)( above picture is the part#1 of the case)

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2019 - 2020 SALES FOR CURREN Average Pizza Price: $25.00 MONTH January February March April |May June July August Sept Oct INOV Dec 2019 SALES 2020 SALES DOLLARS (000) DOLLARS (000) $ 3,500.00 $ 4,080.00 $ 15,400.00 $ 17,680.00 $ 19,600.00 $ 20,400.00 $ 30,800.00 $ 30,600.00 $ 21,700.00 $ 23,120.00 $ 35,700.00 $ 30,600.00 $ 17,500.00 $ 15,300.00 $ 21,000.00 $ 23,120.00 $ 49,700.00 $ 57,120.00 $ 63,000.00 $ 62,560.00 $ 30,800.00 $ 27,608.00 $ 50,400.00 $ 51,340.00 A B D E F G H K M N O VARIABLE EST. OPERATING FIXED COST COST/PIZZA 1,500.00 $ 6,000.00 $ 0.85 10,500.00 $ CASE NOTES: At Isabella's current location, she has been using a convection oven. She is concerned that this method is not cost efficient, especially with the higher volume of business she is expecting at the new location. 1.75 0.45 There are three choices of pizza ovens as outlined to the right. (Note: The production time per pizza has no bearing on the cross-over calculations, but may be important in setting up her kitchen process in Part 4 of the case.) 1 Isabella's Pizza Oven Choices & Costs: 2 PIZZA OVEN OVEN TYPE THROUGHPUT 3 TIME 4 Convection Oven 10 MIN/PIE $ 5 Pizza Deck Oven 13.75 MIN/PIE S 6 Conveyor Oven 1.5 MIN/PIE $ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 For the analysis complete the following: -Go back to Part #1 of the case. Determine the number of pizza's she can expect to sell in 2021. (Average cost per pizza of $25) -Calculate the exact Crossover points mathematically for the three oven options. -Compare two ovens at a time. -Set the cost formula's equal to each other & solve for X number of pizzas. -Graph the data to demonstrate a visual depiction of the cross-over quantity points. -Set up the pizza quantity starting with zero & increasing incrementally above the number she expects to sell. -Determine the correct equipment choice based on the crossover points & the expected 2021 pizza sales. 2019 - 2020 SALES FOR CURREN Average Pizza Price: $25.00 MONTH January February March April |May June July August Sept Oct INOV Dec 2019 SALES 2020 SALES DOLLARS (000) DOLLARS (000) $ 3,500.00 $ 4,080.00 $ 15,400.00 $ 17,680.00 $ 19,600.00 $ 20,400.00 $ 30,800.00 $ 30,600.00 $ 21,700.00 $ 23,120.00 $ 35,700.00 $ 30,600.00 $ 17,500.00 $ 15,300.00 $ 21,000.00 $ 23,120.00 $ 49,700.00 $ 57,120.00 $ 63,000.00 $ 62,560.00 $ 30,800.00 $ 27,608.00 $ 50,400.00 $ 51,340.00 A B D E F G H K M N O VARIABLE EST. OPERATING FIXED COST COST/PIZZA 1,500.00 $ 6,000.00 $ 0.85 10,500.00 $ CASE NOTES: At Isabella's current location, she has been using a convection oven. She is concerned that this method is not cost efficient, especially with the higher volume of business she is expecting at the new location. 1.75 0.45 There are three choices of pizza ovens as outlined to the right. (Note: The production time per pizza has no bearing on the cross-over calculations, but may be important in setting up her kitchen process in Part 4 of the case.) 1 Isabella's Pizza Oven Choices & Costs: 2 PIZZA OVEN OVEN TYPE THROUGHPUT 3 TIME 4 Convection Oven 10 MIN/PIE $ 5 Pizza Deck Oven 13.75 MIN/PIE S 6 Conveyor Oven 1.5 MIN/PIE $ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 For the analysis complete the following: -Go back to Part #1 of the case. Determine the number of pizza's she can expect to sell in 2021. (Average cost per pizza of $25) -Calculate the exact Crossover points mathematically for the three oven options. -Compare two ovens at a time. -Set the cost formula's equal to each other & solve for X number of pizzas. -Graph the data to demonstrate a visual depiction of the cross-over quantity points. -Set up the pizza quantity starting with zero & increasing incrementally above the number she expects to sell. -Determine the correct equipment choice based on the crossover points & the expected 2021 pizza sales

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