The Local Convenience Store Makes Personal Pan Pizzas

question 46

Essay

The local convenience store makes personal pan pizzas. Currently, their oven can produce 50 pizzas per hour. It has a fixed cost of $2,000, 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 $3,000, but a variable cost of $0.20 per pizza.
a. At what quantity do the two ovens have equal costs?
b. If the owner expects to sell 9,000 pizzas, should he get the new oven?

---

Definitions:

Communion

A social or religious ceremony emphasizing unity and shared beliefs, often involving the sharing of bread and wine in Christianity.

Agency

The capacity of individuals to act independently and make their own free choices.

Androgynous

Exhibiting both traditional masculine and feminine psychological characteristics.

Aggressive Model

A concept in psychology that suggests exposure to aggressive behavior or attitudes can lead to an increase in aggression in individuals.