Janelle heinke the owner of hapeppas is considering a new


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 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven 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 $1.00 per pizza. The pizzas sell for $14.00 each.

a) The? break-even point in units for oven type A? =__ units (round your response to the nearest whole number)

The? break-even point in units for oven type B =__ units (round your response to the nearest whole number)

b) If Janelle is expecting that the pizza shop is going to sell 9,000 pizzas then she should select oven___

If Janelle is expecting that the pizza shop is going to sell 13,000 pizzas then she should select oven___

c) The volume at which over A and over B have the same cost (crossover point) and Janelle would be indifferent =___pizzas

(round your response to the nearest whole number)

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