Paul would be indifferent equals how many calzones

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Reference no: EM13778801

Paul Pananzzia, is considering a new pizza baking oven in which to cook the firms signature dish, calzone a la vegetarian. The new oven type A can handle 24 calzones an hour, Pauls fixed costs for equipment A is 25,000 and the variable cost is 3.00 per calzone. Oven B is bigger and cooks 40 calzones an hour. Paul's fixed cost for oven B is 32,500 and the variable cost is 1.25 per calzone. The calzones sell for 14.00 each

A) The breakeven point in units for oven type A = ____?

B) The breakeven point in units for oven type B=_____?

C) If paul thinks that his restaurant is going to be able to sell 10,000 calzones, then he should select which oven?

D) if paul thinks that his restaurant is going to be able to sell 14,000 calzones then he should select which oven?

E) The volume at which oven A and oven B have the same csost (crossover point) and paul would be indifferent equals how many calzones?

Reference no: EM13778801

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