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4) [a2] TBF is a small grocery store chain in the Lehigh Valley. The company is trying to decide whether to include a bakery section
4) [a2] TBF is a small grocery store chain in the Lehigh Valley. The company is trying to decide whether to include a bakery section in its stores, using ples for analysis, Baking the pies in-house would cost $100 per day and $3 per pie. Pies can be purchased for $5 each from a local bakery plus a fixed transportation cost of $40. As a third alternative, pies can be purchased at 54 each from a large regional bakery, but the transportation cost will be $65. The selling price per pie is $8. a) [6] Determine the breakeven pie sales quantity for each alternative. b] [6] If the decision is based solely on low cost, for what ranges of pie sales would each alternative be chosen
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