Explain school cafeteria make or buy its pizzas, Operation Management

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The school cafeteria can make pizza for approximately $0.30 a slice. The cost of kitchen use and cafeteria staff runs about $200 per day. The Pizza Den nearby will deliver whole pizzas for $9.00 each. The cafeteria staff cuts the pizza into eight pieces and serves them in the usual cafeteria line. With no cooking duties, the staff can be reduced by half, for fixed cost of $75 per day. Should the school cafeteria make or buy its pizzas?


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