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Part Ten Big Als Pizza Emporium, a subsidiary of Big Als Pizza, Inc., has decided to sell frozen pizzas in its restaurants. Restaurant customers will
Part Ten Big Als Pizza Emporium, a subsidiary of Big Als Pizza, Inc., has decided to sell frozen pizzas in its restaurants. Restaurant customers will take these pizzas home and cook them. The restaurants will sell frozen meat pizzas for $10 and frozen veggie pizzas for $11.50. Although the restaurants would like to purchase the pizzas from Big Als Pizza, Inc., Big Als Pizza Emporium has found an unrelated supplier that will provide the meat pizzas for $4.55 and veggie pizzas for $5.75. Assume that Big Als Pizza, Inc. has excess capacity and can supply the frozen pizzas to Big Als Pizza Emporium Part Ten Purchase Decision A. Calculate at what price should Big Al sell the frozen pizzas to Big Als Emporium? B. Comment as to whether Big Al should sell the pizzas to Big Als emporium or if Big Als emporium should buy them from the unrelated supplier. Support your
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