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The pizza maker made $26 minus whatever it costs to produce the pizza in time and materials. If the pizza cost $7 to make then the pizza maker makes $14 in profit versus $7. Also they lost a buck on that $6 pizza.

Further complexities: maybe it's a slow day and those employees were idle, and the raw materials were going to go bad without being used anyway - so if the $6 customer is buying it as cost the pizza maker may still be winning. Especially if they sold some fountain drinks to that customer, which are almost pure profit.

If you want a sustainable business, you need to cover your materials cost. Arguably paying less than the materials/shipping cost for something is morally wrong, especially if you know damn well this thing costs more than that to make and ship.




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