Three Bags Full is a small grocery store chain in the Lehigh Valley. 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?
This question was answered on: Jul 11, 2017
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