The General Store at State University is an auxiliary bookstore located near the dormitories that sells academic supplies, toiletries, sweatshirts andT-shirts, magazines, packaged food items, and canned soft drinks and fruit drinks. The manager of the store has noticed that several pizza deliveryservices near campus make frequent deliveries. The manager is therefore considering selling pizza at the store. She could buy premade frozenpizzas and heat them in an oven. The cost of the oven and freezer would be $27,000. The frozen pizzas cost $3.75 each to buy from a distributorand to prepare (including labor and a box). To be competitive with the local delivery services, the manager believes she should sell the pizzas for$8.95 apiece. The manager needs to write up a proposal for the university's director of auxiliary services. Determine how many pizzas would have to be sold to break even.

The General Store at State University is an auxiliary bookstore located near the dormitories that sells academic supplies, toiletries, sweatshirts andT-shirts, magazines, packaged food items, and canned soft drinks and fruit drinks. The manager of the store has noticed that several pizza deliveryservices near campus make frequent deliveries. The manager is therefore considering selling pizza at the store. She could buy premade frozenpizzas and heat them in an oven. The cost of the oven and freezer would be $27,000. The frozen pizzas cost $3.75 each to buy from a distributorand to prepare (including labor and a box). To be competitive with the local delivery services, the manager believes she should sell the pizzas for$8.95 apiece. The manager needs to write up a proposal for the university's director of auxiliary services. Determine how many pizzas would have to be sold to break even.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

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