Follow the instructions. Typewritten for an upvote. No upvote for handwritten. PLEASE SKIP IF YOU HAVE ALREADY DONE THIS. Thank you Julia Robertson is a senior at Tech, and she's investigating different ways to finance her final yearat school. She is considering leasing a food booth outside the Tech stadium at home football games. Techsells out every home game, and Julia knows, from attending the games herself, that everyone eats a lotof food. She has to pay $1,000 per game for a booth, and the booths are not very large. Vendors can selleither food or drinks on Tech property, but not both. Only the Tech athletic department concessionstands can sell both inside the stadium. She thinks slices of cheese pizza, hot dogs, and barbecuesandwiches 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 halftime; thus it willnot be possible for Julia to prepare the food while she is selling it. She must prepare the food ahead oftime and then store it in a warming oven. For $600 she can lease a warming oven for the six-game homeseason. The oven has 16 shelves, and each shelf is 3 feet by 4 feet. She plans to fill the oven with thethree food items before the game and then again before halftime.Julia has negotiated with a local pizza delivery company to deliver 14-inch cheese pizzas twiceeach game 2 hours before the game and right after the opening kickoff. Each pizza will cost her $6 andwill include 8 slices. She estimates it will cost her $0.45 for each hot dog and $0.90 for each barbecuesandwich if she makes the barbecue herself the night before. She measured a hot dog and found it takesup about 16 square inches of space, whereas a barbecue sandwich takes up about 25 square inches. Sheplans 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 theremaining five games she will purchase her ingredients with money she has made from the previousgame.Julia has talked to some students and vendors who have sold food at previous football games atTech as well as at other universities. From this, she has discovered that she can expect to sell at least asmany slices of pizza as hot dogs and barbecue sandwiches combined. She also anticipates that she willprobably sell at least twice as many hot dogs as bar-becue sandwiches. She believes that she will selleverything she can stock and develop a customer base for the season if she follows these generalguidelines for demand.If Julia clears at least $1,000 in profit for each game after paying all her expenses, she believes itwill be worth leasing the booth.REQUIRED: Formulate a model that can help Julia solve her problem.N

At home football games, Julia Robertson is thinking about renting a food stand outside the Tech…

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 halftime; 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 halftime. Julia has negotiated with a local pizza delivery company to deliver 14-inch cheese pizzas twice

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...