Company realizes a contribution margin

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Reference no: EM13135827

Pisa Pizza Parlor is investigating the purchase of a new $47,500 delivery truck that would contain specially designed warming racks. The new truck would have a eight-year useful life. It would save $6,300 per year over the present method of delivering pizzas. In addition, it would result in the sale of 2,300 more pizzas each year. The company realizes a contribution margin of $1 per pizza.

Reference no: EM13135827

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Company realizes a contribution margin : It would save $6,300 per year over the present method of delivering pizzas. In addition, it would result in the sale of 2,300 more pizzas each year. The company realizes a contribution margin of $1 per pizza.

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