Required information [The following information applies to the questions displayed below.] Pizza Pies Limited has the following value chain for its pizzas. Boxes are designed by Shala Designers Inc. and printed and delivered by Rodoes Printing Co. for $0.95 per box. The pizzas are made in the stores with fresh ingredients and baked in the ovens for a total cost of $3.80, including labor, ingredients, and overhead. The pizza delivery costs $1.35. Pizza Pies needs to reduce the price of its pizza to $6.50 to meet local demand. However, it desires a 10 percent markup for profit.

b. Identify places in the Pizza Pies Limited value chain where possible savings could be achieved to meet the target cost. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Pizza Pies could talk with Shala Designers and Rodoes Printing to determine if some costs could be cut from packaging.

Suppliers of materials could be approached for price reductions.

Internal production processes could be reviewed for cost savings.

Reduce the price of the pizza to $6.50.

Reduce its markup.