While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. You cannot spare the time to pick up the pizza and must have it delivered. "YellowTaxi Pizza" offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for ₱750 plus 5% service charge and a ₱75 delivery charge (no service charge on delivery fee). "Pizza Kubo" offers the round, deep-dish Chicago-style, which is 20 inches in diameter. It is 1-3/4 inches thick, includes two toppings, and costs ₱862.50 plus 5% service charge and free delivery.
a. What is the problem in this situation? Please state in an explicit and precise manner.
b. Systematically apply the seven principles of engineering economy to the problem you have
defined in part (a).
c. Assuming that your common unit of measure is in pesos (i.e., cost), what is the better value for
getting a pizza based on the criterion of minimizing cost per unit of volume?
d. What other criteria might be used to select which pizza to purchase?