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Category > Accounting Posted 11 Oct 2017 My Price 5.00

Janelle Heinke, the owner of Ha’Peppas!, is considering a new oven in which to bake the firm’s signature dish,

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 $1.25 per pizza. The pizzas sell for $14 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?

c) If the owner expects to sell 12,000 pizzas, which oven should she purchase?

d) At what volume should Janelle switch ovens?

Answers

SmartExpert
(118)
Status NEW Posted 11 Oct 2017 04:10 AM My Price 5.00

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Attachments

file 1507770785-Janelle Heinke.xlsx preview (301 words )
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