# Pizza and Plain Cheese

Satisfactory Essays
Arrowmark Vending has the contract to supply pizza at all home football games for a university in the Big 12 atheletic conference. It is a constant challenge at each game to determine how many pizzas to have available at the games. Tom Kealey, operations manager for Arrowmark, has determined that his fixed cost of providing pizzas, whether he sells 1 pizza or 4000 pizzas, is \$1,000. This cost includes hiring employees to work at the concession booths, hiring extra employees to cook the pizzas the day of the game, delivering them to the game, and advertising during the game. He believes that this cost should be equally allocated between two types of pizzas.

Tom has determined that he will supply only two types of pizzas: plain cheese and pepperoni and cheese combo. His cost to make a plain cheese pizza is \$4.50 each, and his cost to make pepperoni and cheese combo is \$5.00 each. Both pizzas will sell for \$9.00 at the game. Unsold pizzas have no value and are donated to a local shelter for the homeless.

Past experience has shown the following demand distributions for the two types of pizza at home games:

Plain Cheese Demand/Probability
200 / 0.1
300 / 0.15
400 / 0.15
500 / 0.2
600 / 0.2
700 / 0.1
800 / 0.05
900 / 0.05

Pepperoni and Cheese Demand / Probability
300 / 0.1
400 / 0.2
500 / 0.25
600 / 0.25
700 / 0.15
800 / 0.05

1) For each type of pizza, determine the profit (or loss) associated with producing at each possible demand level. For instance, determine the profit if 200 plain cheese pizzas are produced, and 200 are demanded. What is the profit if 200 plain cheese pizzas are produced, but 300 were demanded, and so on.

2) Compute the expected profit associated with each possible production level (assuming Tom will only produce at one of the possible demand levels) for each type of

## You May Also Find These Documents Helpful

• Good Essays

Cheese pizza is a consumer product that is bought to satisfy individual’s personal wants. It is a shopping product that requires comparison shopping because it is usually more expensive and found in fewer stores. It is not as popular as pizza box and pizza hut, but it is an relatively new product in the market and offers an alternative for customers with different wants. Cheese pizza is now at the growth stage. It is experiencing increasing rate of sales, entrance of competitors, market consolidation…

• 718 Words
• 3 Pages
Good Essays
• Good Essays

2/28/13 Large Pizza, Extra Cheese, Extra Norovirus You can’t stand it. You open the door and generously greet the beauty you’ve been waiting a whole hour for. Your taste buds are teasing you. Craving the molten melted cheese topped with every one of your favorite meats and vegetables. It shines like it’s just been on a treadmill for 3 hours before landing right in your hands, in a perfectly folded box. The ten dollar and fifty cent beauty is all yours, and it’s calling your name. Nothing can…

• 666 Words
• 3 Pages
Good Essays
• Good Essays

Broad and flat, plains are well named. Some appear when glaciers and streams erode away elevated terrain; others spread where rising magma pushes, erupts, and spews. Some plains spill into the oceans, and others are bound by mountains on several sides. They all hide a tumultuous geologic history beneath their level disguise. The base of the vast Great Plains in North America formed when several small pieces of continental crust collided and welded together more than a billion years ago. As time…

• 345 Words
• 2 Pages
Good Essays
• Satisfactory Essays

Cheddar cheese is a relatively hard, pale-yellow-to-off-white (unless artificially coloured), sometimes "sharp" (i.e., acidic)-tasting, natural cheese. Originating in the English village of Cheddar in Somerset,[1] cheeses of this style are produced beyond this region and in several countries around the world. Cheddar is the most popular type of cheese in the U.K., accounting for 51 percent of the country's £1.9 billion annual cheese market;[2] it is also the second-most-popular cheese in the U…

• 650 Words
• 3 Pages
Satisfactory Essays
• Satisfactory Essays

Ashley McNeely Pizza Pizza is one of my favorite foods and I could probably eat it every day if I had the chance. Living in Chicago I have had deep dish pizza once or twice, but it just doesn’t do it for me. I like my crust thin, the thinner the better. Some days I want a ton of cheese and toppings, but other days just some tomatoes, basil, and a splash of fresh mozzarella does it for me. The last time I had pizza was Monday night. Our landlord bought it for us from Bacci pizza up the street…

• 322 Words
• 2 Pages
Satisfactory Essays
• Good Essays

are essential is the pizza business. This type of business heavily relies on giving good accommodations for their customers to attract good vibes and have good sales every day. Online table records system are designed to minimize the work of employee by having a automated table serving for the customers so that they can focus on other things they need to do. Pizza is an oven-baked, flat, round bread typically topped with a tomato sauce, cheese and various toppings. Pizza was originally invented…

• 359 Words
• 2 Pages
Good Essays
• Good Essays

Topic-Food Focus- family togetherness, Deep dish pizza, New York style pizza and homemade pizza, Purpose – to inform Audience – single parents with small children Tone – excited Who- bonding over pizza What – promotes bonding with your children Why – continue or create family experiences When – past and present Where – Home with your kids Emphatic Writing Pattern Pizza is a very common food Item you can find anywhere in New York, it can provide a quick fix if you are hungry but it can…

• 587 Words
• 3 Pages
Good Essays
• Good Essays

String Cheese Place of Origin: Although snack-size sticks of mozzarella are now sold under this name, true string cheese originated in Syria, and often comes in a braided rope. The flavor is similar to mozzarella, but saltier. Ingredients: String cheese is usually made from Mozzarella cheese. The ingredients used to make Mozzarella cheese consists of: pasteurized part-skimmed cow's milk with starter cultures, enzymes, and salt. It can also come in smoked and unsmoked versions, often with garlic…

• 609 Words
• 3 Pages
Good Essays
• Good Essays

Have you ever had a pan pizza from Pizza Hut? I hope that you have. I understand the price can be high, but do not worry about the price I have a recipe for that same amazing pan pizza. It will cost you a fraction of the price and you could even use organic ingredients. The process that I will be going over today is making Pizza Huts number one crust, and the recipe that I am analyzing is the best that I have tasted, so if you want to know how the dough is prepared, the sauce is made, and how to…

• 629 Words
• 3 Pages
Good Essays
• Good Essays

Peer Pressure is a Positive Influence in teenage society, because “Uh, my friends told me it was”. Does this sound like the sort of thing that you would hear regularly in drafting? (This is a rhetorical question, don’t answer it, as I am about to do that for you.). No, of course it doesn’t, for the simple reason that it is near impossible to write a 400-500 word essay on the positive aspects of peer pressure. As such, I’m going to take the year 9 (Read: Easy) way out of it, and just write a summary…

• 443 Words
• 2 Pages
Good Essays