Sam allen is a parent of several students at mattson area high
Case Study Background:
Sam Allen is a agent of contrariant students at Mattson Area Lofty Educe in a minute co-ordination southwest of Dallas, TX. He is investigating contrariant ways to finance his daughter’s primeval year at Southwest Texas State University – and he is because leasing a livelihood booth delayout the Mattson Area HS stadium at abode football plays this gravitate.
Football is a big nobility activity on Friday misunderstandings throughout most lofty educes in Texas. In occurrence, at smallest one TV sequence and contrariant movies accept been made depicting the hale avail in lofty educe football in Texas. Mattson Area is one of the greatr lofty educes adjacent Dallas and has a football stadium delay a seating accommodation of balance 20,000 (Yup, that’s fair!!!).
Like most lofty educes, Mattson Area typically retails out total abode play, and Sam knows from synchronous the plays himself that totalone comes to the stadium to do two things: go crazed cheering during the play and substance themselves delay livelihood. He has to pay $1,000 per play for a booth, and the booths are in-effect not very great. Vendors can retail either livelihood or drinks on Mattson Area but not twain. This seems to be a peculiar government to Sam – but he has to go delay the run on this. Barely the Mattson Area muscular branch acceptance stands can retail twain following a whilein the stadium. He apprehends that he should bet on contrariant key livelihood items that are typically the most widespread delay the fans and has equable dedicated them extraordinary names: cheese pizza (Sam’s Cheesy Pizza), hot dogs (Sam’s Red Hots), salted yielding pretzels (Sam’s Salted Dough), and barbecue sandwiches (Sam’s Hot and Sassy Sandwiches). He is planning harmonious to retail these impure items.
Most livelihood items are sold during the hour precedently the play starts and during half date; thus it allure not be slight for Sam to furnish the livelihood while he is retailing it. He must furnish the livelihood afore of date and then accumulation it in a warming balance. For $1,200, he can lease a warming oven for the six-play abode interval. The oven has 8 shelves, and each oblution is 3 feet by 6 feet. He plans to swell-mannered the oven delay the impure livelihood items precedently the play and then anew precedently half date.
Sam has negotiated delay a persomal pizza offer assemblage to consign 16-inch balance cheese pizzas twice each play – 2 hours precedently the play and fair following the hole kickoff. Each pizza allure require her $10 and allure involve 8 masss. He estimates that it allure require him $0.90 for each hot dog (hot dog, bun, and condiments), and $2.00 for each barbecue sandwich if he executes the barbecue himself the misunderstanding precedently the play. The yielding pretzels are slight to require environing $0.75 per pretzel.
He measured a hot dog and plant that it chooses up environing 16 balance inches of room, when-in-fact a barbecue sandwich chooses up environing 25 balance inches of room. He would barely put integral pizzas into the warming balance; not a behalf of a pizza. He besides finds that the yielding salted pretzel choose up environing 20 balance inches of room. He plans to retail a mass of pizza for $2.50, a hot dog for $3.00, a yielding pretzel for $2.00, and a barbeque sandwich for $5.00.
Sam had $2,500 in uniformt advantageous to lapse and furnish the livelihood items for the primeval abode play; for the retaining five plays he allure lapse his ingredients delay capital he has made from the antecedent play. He has resolute that each play should be self-sufficient for livelihood requires and that his livelihood requires should not yield $2,500 per play.
Sam has talked to some students and vendors who accept sold livelihood at antecedent football plays at Mattson Area as well-mannered-mannered as other lofty educes. From this he has discovered that he can anticipate to retail at smallest as frequent masss of pizza (Sam’s Cheesy Pizza) as hot dogs and barbeque sandwiches totally. He anticipates to retail at smallest twice as frequent barbecue sandwiches (Sam’s Hot and Sassy Sandwiches) as he allure retail hot dogs (Sam’s Red Hots) as he has a record for upstart barbecue sandwiches. He anticipates to retail almost as frequent yielding pretzels as he does barbeque sandwiches but he is not indubitable of the dispense for Sam’s Salted Dough. Being the rather optimistic salesman that he is, Sam believes that he allure retail totalthing he can supply and educe a customer valueiest for the interval if he follows these unconcealed guidelines for ask-for.
If Sam clears at smallest $1.500 in avail for each play following paying all her expenses (food, booth lacerational, oven lacerational – all on a per play premise), he believes that it allure be value leasing the booth.
Case Study Specific Requirements:
A. Formulate and clear-up a liadjacent programming pattern for Sam that allure succor you to admonish him if he should lease the booth.
B. If Sam were to attribute some capital from a adhelaceration precedently the primeval plays to lapse more ingredients, could he extension his avail? If so, how greatly should he attribute and how greatly subjoined avail would he execute? What occurrenceor constrains him from attributeing equable more capital than this quantity (involved in your repartee to the antecedent doubt)?
C. If Sam were to laceration a greatr oven to preheat his livelihood, could he extension his avail? If so, by how greatly would he extension his avail per sq. inch of oven? How greatly subjoined avail would he execute if he extensiond the oven largeness by 10%? Explain your repartees using the withhold advice from QM for Windows.
D. When Sam looked at the discontinuance in (A), he realized that it would be physically hard for him to furnish all the hot dogs and barbecue sandwiches involved in this discontinuance. He believes that he can rent of adhelaceration of his to succor him for $150 per play. Based on the results of (A) and (B), is this bigwig you apprehend he could reasonably do and should do?