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Regis University Operations And Supply Chain Management Assignment Help - The oven and equipment


Question - Lugano's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing
and baking "crazy bread." The oven and equipment would cost $143,200 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 80,000 loaves of crazy bread each year. The bread sells for $1.35 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 as follows: salaries, $25,000; utilities,
$3,000; and insuranc ...Read More

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