ISOM 351 Lecture 3: September Notes

8) Mario's Pizzeria sells only two kind of pizza: plain and all-dressed. Last year, Mario's Pizzeria sold 2,000 all-dressed pizzas, selling them for $10 each. Mario's sold 10,000 plain pizzas at $5 each. The cost of the ingredients, the box, and all of the electricity and utilities to make the pizzas came to $20,000. In addition, Mario paid $10,000 rent for the store. Finally, Mario paid a total of $10,000 to a couple of students who worked part time, helping out on busy Friday and Saturday nights. Mario paid himself no salary, but took home all of the profits. Last year, Mario made a profit of a) b) c) d) $40,000 $30,000 $60,000 loss of $10,000