Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 (2 points) The General Store at State University is an auxiliary bookstore located near the dormitories that sells academic supplies, toiletries, sweatshirts

image text in transcribed

Question 3 (2 points) The General Store at State University is an auxiliary bookstore located near the dormitories that sells academic supplies, toiletries, sweatshirts and T-shirts, magazines, packaged food items, and canned soft drinks and fruit drinks. The manager of the store has noticed that several pizza delivery services near campus make frequent deliveries. The manager is therefore considering selling pizza at the store. She could buy premade frozen pizzas and heat them in an oven. The cost of the oven and freezer would be $27,000. The frozen pizzas cost $3.75 each to buy from a distributor and to prepare (including labor and a box). To be competitive wit the local delivery services, the manager believes she should sell the pizzas for $8.9 apiece. The manager needs to write up a proposal for the university's director of auxiliary services. If she sells 7,200 pizzas in the first semester, how much will her variable costs be? (Rounded to the nearest whole number.) $64,440 $63,560 $54,000 $10,440

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management

Authors: Warren R. Plunkett, Gemmy S. Allen

10th edition

1111221340, 978-1111221348

More Books

Students also viewed these General Management questions

Question

Describe two of Georg Elias Mllers contributions to psychology.

Answered: 1 week ago

Question

TCP UDP QuickSort HTTP HTTPS SQL RESTful API

Answered: 1 week ago

Question

13. Consider Pr(St

Answered: 1 week ago