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4. Tony's Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain
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Tony's Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats firm expects that sales of the new pizza will be $27 million per year, although 35.0% will come from customers who switch to the new healthier pizz instead of buying the original version. 1. Assuming customers will spend the same amount on either version, what level of incremental sales is associated with introducing the new pizza? enter in millions to 2 decimal places) Tony's Pizza will need need to upgrade its pizza oven. The existing oven, which has a useful life of 7 years, was purchased at a cost of $160003 year The pizza oven is depreciated on a straight-line basis and Tony's tax rate is 28.0%. The pizza oven can be sold today for $9000. 2. What is the current book value of the pizza oven? (Please round to the nearest dollar) 3. What is the after tax salvage value of the pizza oven? (Please round to the nearest dollar)Step by Step Solution
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