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Business, 24.09.2021 14:20 Bryson2148

Question The management of a large bakery is considering a line of pies. There are two options. Option 1 is to purchase an existing line of pies with a fixed cost of $10,000 monthly. The variable costs would be $ 1.5/pie. Option 2 is to lease an equipment at a monthly payment of $6,000. Variable costs would be $2/pie. The management expects that it can sell 10,000 pies.

a. What is the break-even point of two options?

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