What does daily demand have to be to justify baking pies

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Reference no: EM133702148

Problem: Three Bags Full is a small grocery store chain in Halifax, NS. The company is trying to decide whether to include a bakery section in its stores. You have been asked to run the numbers using pies as an example. Baking the pies in-house would cost $80 per day and $1 per pie. Pies can be purchased for $4 each from a local bakery, or $3 each from a large regional bakery. The regional bakery requires a minimum purchase of 25 pies per day. Which alternative would you recommend? Three Bags Full should order from the local bakery if the daily demand for pies is fewer than. What does daily demand have to be to justify baking pies in house?

Reference no: EM133702148

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