Question 3 (Total 15 marks) Pizza Home is considering to buy a new oven to expand their pizzas business

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Question 3 (Total 15 marks) Pizza Home is considering to buy a new oven to expand their pizzas business . Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and variable costs are $2.00 per piece of pizza . Oven type B is larger, and can handle 40 pizzas an hour. The fixed costsI associated with oven B are $30,000 and variable costs are $1.25 per piece of pizza . The pizzas are sold at $14 per piece . a) What is the breakeven point in terms of piece of pizza for each oven ? (2 marks ) b) If the owner expects to sell 9,000 pieces , which oven should he purchase ? (3 marks ) C) If the owner expects to sell 12,000 pieces ,which oven should he purchase ? (3 marks ) d) Due to market situation ,the selling price is now reduced to $12 per piece ,then how are the breakeven points of oven A and B be affected? (2 marks ) e) If you were the owner of Pizza Home , besides breakeven point analysis what other factms should you consider to make a better comparison between oven A and B? Suggest five of them . (5 marks )