4. You find a farmer in Lancaster who will sell you wheat. It takes you 5 minutes to grind the wheat into a pound of white flour, and the supplies for that pound of white flour costs you $0.29 per pound. You can make 15 margherita pizzas using 15 pounds of flour, 4 cartons of tomatoes, one basil plant, and 4 pounds of mozzarella. It takes you about an hour of labor to make the 15 simultaneously, and you decide to sell only white flour pizzas. Remember, if everyone makes a profit, you only pay $20 per week to rent the kitchen. If someone does not make a profit, you pay $25 per week.
Ingredient
Tomatoes $3 per carton
Basil $2 per plant
Mozzarella $5 per pound
White Flour $0.29 per pound
Price (per unit)
a. What price (per pizza) would allow you to break even for the week after 15 pizzas?