(Answered) The location convenience store makes personal pan pizzas

Management Studies

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

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