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columbia university Operations And Supply Chain Management Assignment Help - Lugano’s Pizza

Question - Lugano’s Pizza Parlor is considering the purchase of a large oven and related equipment for mixing and baking ?ocrazy bread.?? The oven and equipment would cost $120,000 delivered and installed. It would be usable for about 15 years, after which it would have a 10% scrap value. The following additional information is available: a. Mr. Lugano estimates that purchase of the oven and equipment would allow the pizza parlor to bake and sell 72,000 loaves of crazy bread each year. The bread sells for $1.25 per loaf. b. The cost of the ingredients in a loaf of bread is 40% of the selling price. Mr. Lugano estimates that other costs each year associated with the bread would be the following: salaries, $18,000; utilities, $9,000; and insur ...Read More

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