The CEO of Medium Caesar's Pizza is considering a new oven in which to bake the speci pizza of the house. A are $20,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 40 pizza he fixed costs associated with oven B are $30,000 and the variable costs are Oven A can handle 20 pizzas an hour. The fixed costs associated with oven $1.25 per pizza. The pizzas sell for $14 each on average.
A. What is the break-even point for each oven in terms of volume?
B. If the owner expects to sell 9,000 pizzas, which oven should she choose?
C. If the owner expects to sell 12,000 pizzas, which oven should she choose?