The local convenience store makes personal pan pizzas. Currently their process makes complete pizzas fully cooked for the customer. This
process has a fixed cost of $20000 and a variable cost of $2.00 per pizza. The owner is considering a different process that can make pizzas in two ways:
completely cooked (as before) or partially cooked and then flash frozen for the customer to finish at home. This alternate process has a fixed cost of
$24000 but a lower variable cost (because much less energy is used in baking) of $1.50 per pizza.
a. What is the crossover point between the existing process and the proposed process?
b. If the owner expects to sell 9000 pizzas should he get the new oven?