Q3: Janelle Heinke, the owner of Heinke Pizza, is considering a new oven in which to bake the firm's signature dish, veg

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Q3 Janelle Heinke The Owner Of Heinke Pizza Is Considering A New Oven In Which To Bake The Firm S Signature Dish Veg 1 (21.47 KiB) Viewed 41 times

Q3: Janelle Heinke, the owner of Heinke Pizza, 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 $25,000 and the variable costs are $1.99 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven Bare $32,000 and the variable costs are $1.30 per pizza. The pizzas sell for $15 each a) If the owner expects to sell 10,000 pizzas, which oven should she purchase? (4 points) b) If the owner expects to sell 13,000 pizzas, which oven should she purchase? (4 points) c) At what volume should Janelle switch ovens? (2 points)