The groovy movie chains has invested in a snack bar for its

Reference no: EM13595214

The Groovy Movie Chains has invested in a snack bar for its store, where individual pizzas would be prepared and sold. The investment cost the company $48,000. The company expects a sales volume for the new product to be 12,000 pizzas a year. Variable materials, preparation, and marketing costs are expected to be $1.65 a unit and fixed costs are estimated at $16,800 a year. Based on a desired 12% ROI, what should Groovy Movies charge as the selling price per pizza?

Reference no: EM13595214

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