JI. Julia's Food Booth Julia Robertson is a senior at Tech, and she's investigating different ways to finance her final year at school. She is considering leasing a food booth outside the Tech stadium at home football games. Tech sells out every home game, and Julia knows, from attending the games herself, that everyone eats a lot of food. She has to pay $1,000 per game for a booth, and the booths are not very large. Vendors can sell either food or drinks on Tech property, but not both. Only the Tech athletic department concession stands can sell both inside the stadium. She thinks slices of cheese pizza, hot dogs, and barbecue sandwiches are the most popular food items among fans and so these are the items she would sell. Most food items are sold during the hour before the game starts and during half time; thus, it will not be possible for Julia to prepare the food while she is selling it. She must prepare the food ahead of time and then store it in a warming oven. For $600 she can lease a warming oven for the six-game home season. The oven has 16 shelves, and each shelf is 3 feet by 4 feet. She plans to fill the oven with the three food items before the game and then again before half time. Julia has negotiated with a local pizza delivery company to deliver 14-inch cheese pizzas twice each game-2 hours before the game and right after the opening kickoff. Each pizza will cost her $6 and will include 8 slices. She estimates it will cost her $0.45 for each hot dog and $0.90 for each barbecue sandwich if she makes the barbecue herself the night before. She measured a hot dog and found it takes up about 16 square inches of space, whereas a barbecue sandwich takes up about 25 square inches. She plans to sell a slice of pizza and a hot dog for $1.50 apiece and a barbecue sandwich for $2.25. She has $1,500 in cash available to purchase and prepare the food items for the first home game; for the remaining five games she will purchase her ingredients with money she has made from the previous game.
JI. Julia's Food Booth Julia Robertson is a senior at Tech, and she's investigating different ways to finance her final year at school. She is considering leasing a food booth outside the Tech stadium at home football games. Tech sells out every home game, and Julia knows, from attending the games herself, that everyone eats a lot of food. She has to pay $1,000 per game for a booth, and the booths are not very large. Vendors can sell either food or drinks on Tech property, but not both. Only the Tech athletic department concession stands can sell both inside the stadium. She thinks slices of cheese pizza, hot dogs, and barbecue sandwiches are the most popular food items among fans and so these are the items she would sell. Most food items are sold during the hour before the game starts and during half time; thus, it will not be possible for Julia to prepare the food while she is selling it. She must prepare the food ahead of time and then store it in a warming oven. For $600 she can lease a warming oven for the six-game home season. The oven has 16 shelves, and each shelf is 3 feet by 4 feet. She plans to fill the oven with the three food items before the game and then again before half time. Julia has negotiated with a local pizza delivery company to deliver 14-inch cheese pizzas twice each game-2 hours before the game and right after the opening kickoff. Each pizza will cost her $6 and will include 8 slices. She estimates it will cost her $0.45 for each hot dog and $0.90 for each barbecue sandwich if she makes the barbecue herself the night before. She measured a hot dog and found it takes up about 16 square inches of space, whereas a barbecue sandwich takes up about 25 square inches. She plans to sell a slice of pizza and a hot dog for $1.50 apiece and a barbecue sandwich for $2.25. She has $1,500 in cash available to purchase and prepare the food items for the first home game; for the remaining five games she will purchase her ingredients with money she has made from the previous game.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Can someone help me formulate an introduction for this case study?
Transcribed Image Text:II.
Julia's Food Booth
Julia Robertson is a senior at Tech, and she's investigating different ways to finance her
final year at school. She is considering leasing a food booth outside the Tech stadium at home
football games. Tech sells out every home game, and Julia knows, from attending the games
herself, that everyone eats a lot of food. She has to pay $1,000 per game for a booth, and the
booths are not very large. Vendors can sell either food or drinks on Tech property, but not both.
Only the Tech athletic department concession stands can sell both inside the stadium. She
thinks slices of cheese pizza, hot dogs, and barbecue sandwiches are the most popular food
items among fans and so these are the items she would sell.
Most food items are sold during the hour before the game starts and during half time;
thus, it will not be possible for Julia to prepare the food while she is selling it. She must prepare
the food ahead of time and then store it in a warming oven. For $600 she can lease a warming
oven for the six-game home season. The oven has 16 shelves, and each shelf is 3 feet by 4 feet.
She plans to fill the oven with the three food items before the game and then again before half
time.
Julia has negotiated with a local pizza delivery company to deliver 14-inch cheese pizzas
twice each game-2 hours before the game and right after the opening kickoff. Each pizza will
cost her $6 and will include 8 slices. She estimates it will cost her $0.45 for each hot dog and
$0.90 for each barbecue sandwich if she makes the barbecue herself the night before. She
measured a hot dog and found it takes up about 16 square inches of space, whereas a barbecue
sandwich takes up about 25 square inches. She plans to sell a slice of pizza and a hot dog for
$1.50 apiece and a barbecue sandwich for $2.25. She has $1,500 in cash available to purchase
and prepare the food items for the first home game; for the remaining five games she will
purchase her ingredients with money she has made from the previous game.
Julia has talked to some students and vendors who have sold food at previous football
games at Tech as well as at other universities. From this she has discovered that she can expect
to sell at least as many slices of pizza as hot dogs and barbecue sandwiches combined. She also
anticipates that she will probably sell at least twice as many hot dogs as barbecue sandwiches.
She believes that she will sell everything she can stock and develop a customer base for the
season if she follows these general guidelines for demand.
If Julia clears at least $1,000
profit for each game after paying all her expenses, she
believes it will be worth leasing the booth.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.