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Amori Pizza, a pizza delivery service, has the following value chain for its pies. Its home delivery boxes are designed, printed, and shipped by Prism
Amori Pizza, a pizza delivery service, has the following value chain for its pies. Its home delivery boxes are designed, printed, and shipped by Prism Packaging for $0.80 per box. The pizzas are made with fresh ingredients and baked in gas ovens for a total cost of $4.20, including labor, ingredients, and overhead. Home deliveries cost $2.50 per pizza. Due to increased competition, the company must reduce its average price to $9.00 per pizza. However, management is determined to achieve a 25 percent markup for profit
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