Essay
The local convenience store makes personal pan pizzas. Currently, their oven can produce 55 pizzas per hour. It has a fixed cost of $4,000, and a variable cost of $0.31 per pizza. The owner is considering a bigger oven that can make 90 pizzas per hour. It has a fixed cost of $6,200, 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 29,000 pizzas, should he get the new oven?
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