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 $14.00 each. a) The break-even point in units for oven type A = 1667 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).

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 12P
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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 $14.00 each.
a) The break-even point in units for oven type A = 1667 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).
Transcribed Image Text: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 $14.00 each. a) The break-even point in units for oven type A = 1667 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).
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