Wyatt and Sofia work as managers of Palacios Pizza. One thing they can’t help but noticing is… 1 answer below »

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The date is January 1, 2019. Wyatt and Sofia work as managers of Palacios Pizza. One thing they can’t help but noticing is that Palacios seems to pay a lot of money for its pizza boxes. After talking with the store’s owner Carmen, they learned that Palacios pays about $200 for each container of pizza boxes. A container holds 2,500 pizza boxes. Apparently, Carmen has shopped this business around and $200 is the cheapest price she can find for a container of 2,500 pizza boxes.

Wyatt and Sofia immediately decide to venture on their own to form their own pizza box manufacturing company named Boz Boxes, Inc. They rent a portion of a small building for $3,000 per month. They also rent a machine which could cut pizza boxes for $4,000 per month. They hire 2 hourly employees, Martin and Paul. They pay Martin $20 per hour and Paul $15 per hour. Sofia and Wyatt focus on the marketing and strategic planning side of the business. Sofia and Wyatt each inherited $250,000 and each contribute that full amount to the business.

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