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Gino's Pizza has been making its own pizza sauce since it opened in 1 9 8 5 . Gino's advertises the freshness of its sauce
Gino's Pizza has been making its own pizza sauce since it opened in Gino's advertises the freshness of its sauceit's made from scratch daily. But making sauce from scratch takes time, and Gino's has a hard time maintaining staffing levels. Because of these challenges, Gino's is considering outsourcing its sauce. More information regarding its options to make or buy is provided below.
tableMake,Buy,DM for one batch,$DL for one batch,Variable MOH for one batch,Fixed MOH for one batch,Cost to buy,,$ per gallon,Quantity per batch or quantity to purchase, gallons, gallons,
a
Your answer is partially correct.
Calculate the relevant cost per gallon to continue making each batch of sauce and compare it with the cost of outsourcing. None of the fixedMOH will be avoided if Gino's buys instead of makes the sauce. Round answers to decimal places, eg
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