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 = 2353 units (round your response to the nearest whole number). b) If Janelle is expecting that the pizza shop is going to be able to sell 9,000 pizzas, then she should select oven A c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 42P
icon
Related questions
Question

part c

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 = 2353 units (round your response to the nearest whole number).
b) If Janelle is expecting that the pizza shop is going to be able to sell 9,000 pizzas, then she should select oven
A
c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven
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 = 2353 units (round your response to the nearest whole number). b) If Janelle is expecting that the pizza shop is going to be able to sell 9,000 pizzas, then she should select oven A c) If Janelle is expecting that the pizza shop is going to be able to sell 12,000 pizzas, then she should select oven
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,