Location convenience store


The location convenience store makes personal pan pizzas. Currently, their oven can make 50 pizzas per hour. It has fixed cost of $2000, and variable cost of $0.25 per pizza. The owner is considering bigger oven which can make 75 pizzas per hour. It has fixed cost of $3000, but variable cost of $.20 per pizza.

a.) At what quantity do the two ovens have equal cost?

b.) If the owner expects to sell 9000 pizzas, should he get a new oven?

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Business Management: Location convenience store
Reference No:- TGS0869524

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