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Hello there, i need this question 1 n 2. Thank you! You are the manager for a restaurant that sells pizza and drinks. You only
Hello there, i need this question 1 n 2. Thank you!
You are the manager for a restaurant that sells pizza and drinks. You only sell combination meals of one pizza and two drinks for $16/meal. An examination of last year's financial statements shows sales of 32,000 meals and costs were as follows: Item Pizza crust Pizza sauce Pizza cheese Pizza toppings Pizza boxes Soft drinks Depreciation Administration Wages Total Cost 8,000 6,000 22,000 24,000 15,000 7,400 120,000 200,000 100,000 Wages are not variable, half of the administration costs are variable. Each of these are separate considerations: 1. Do a quantitative analysis to see if should make a better pizza by incurring $2 in additional costs for better quality ingredients, and increase the selling price by $1. How much would sales have to increase (in units) in order for this to be worthwhile? What are some qualitative considerations? 2. Uber eats has proposed that they can sell pizza's on your behalf. Uber would purchase 10,000 pizza meals at $14/pizza. You currently have total capacity of 40,000 pizzas. Should you accept this offer (provide both a quantitative and qualitative explanation)Step by Step Solution
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