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Should the school cafeteria make or buy its pizzas

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Reference no: EM132800028

The school cafeteria can make pizza for approximately $0.30 a slice. The cost of kitchen use and cafeteria staff runs about $200 per day. The Pizza Den nearby will deliver whole pizzas for $9.00 each. The cafeteria staff cuts the pizza into eight pieces and serves them in the usual cafeteria line. With no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day.

-Should the school cafeteria make or buy its pizzas?

-What is the variable cost (per slice) of ordering pizza from the Pizza Den? Round to 2 decimal places.

-What is the breakeven point? Round to 2 decimal places.

Reference no: EM132800028

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