The Three Brothers from Napoli Pizzeria makes personal pan pizzas. Currently, their ovens can produce 75 pizzas per hour. The restaurant has a fixed cost of $3,000 and a variable cost of $1.25 per pizza. The owners are considering purchasing bigger ovens that can make 100 pizzas per hour. It has a fixed cost of $5,000 but a variable cost of $0.75 per pizza.
A) At what quantity do the two ovens have equal costs?
B) If the owners expect to sell 9,000 pizzas, is the new oven a wise investment?

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The Answer of The Three Brothers from Napoli Pizzeria makes personal pan pizzas. Currently, their ovens can produce 75 pizzas per hour. The restaurant has a fixed cost of $3,000 and a variable cost of $1.25 per pizza. The owners are considering purchasing bigger ovens that can make 100 pizzas per hour. It has a fixed cost of $5,000 but a variable cost of $0.75 per pizza.

The Three Brothers from Napoli Pizzeria Makes Personal Pan Pizzas