The Cineplex Movie Theater Has Invested in a Snack Bar

question 65

Multiple Choice

The Cineplex Movie Theater has invested in a snack bar for its store,where individual pizzas would be prepared and sold.The investment cost the company $45,000.The company expects a sales volume for the new product to be 12,000 pizzas a year.Variable materials,preparation,and marketing costs are expected to be $1.50 per unit and fixed costs are estimated at $15,000 a year.Based on a desired 12% ROI,what should Cineplex charge as the selling price per pizza?

• A) $3.00
• B) $2.75
• C) $5.20
• D) $3.20

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Definitions:

Velocity

The speed of something in a given direction, often used in physics to describe motion but can extend to describe the pace of change in various contexts.

Variety

The quality or state of being different or diverse; the absence of uniformity or monotony.

Evidence-based Management

A practice where managerial decisions and organizational practices are made based on the best available evidence from multiple sources.

Evidence-based Science

A methodological approach that emphasizes the use of empirical evidence and research in the formation of scientific knowledge and policy-making.