Business, 08.10.2019 22:20 Amyra2003

Janelle heinke, the owner of ha'peppas! , is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. oven type a can handle 22 pizzas an hour. the fixed costs associated with oven a are $ 25 comma 000 and the variable costs are $ 2.50 per pizza. oven b is larger and can handle 40 pizzas an hour. the fixed costs associated with oven b are $ 32 comma 500 and the variable costs are $ 1.50 per pizza. the pizzas sell for $ 12.00 each.

(a) what is the break-even point for each oven?
(b) if the owner expects to sell 9,000 pizzas, which oven should she purchase?

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