Present method of delivering pizzas

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Reference no: EM131212806

Pisa Pizza Parlor is investigating the purchase of a new $45,000 delivery truck that would contain specially designed warming racks. The new truck would have a six-year useful life. It would save $5,400 per year over the present method of delivering pizzas. In addition, it would result in the sale of 1,800 more pizza each year. The company realizes a contribution margin of $2 per pizza.

Reference no: EM131212806

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