The fixed costs associated with oven

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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 22 pizzas an hour. The fixed costs associated with oven A are $ 25,000 and the variable costs are $ 3.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $ 32,500 and the variable costs are $ 1.50 per pizza. The pizzas sell for $ 14.00 each.

Reference no: EM131280652

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