2 Should you offer special rates for rush orders? Suppose you have just put a tray of cookies into the oven and someone calls up with a "crash priority" order for a dozen cookies of a different flavor. Can you fill the priority order while still fulfilling the order for the cookies that are already in the oven? If not, how much of a premium should you charge for filling the rush order? KRISTEN'S COOKIE COMPANY (A) You and your roommate are preparing to start Kristen's Cookie Company in your on-campus apartment. The com- pany will provide fresh cookies to starving students late at night. You need to evaluate the preliminary design for the company's pro- duction process to figure out many variables, including what prices to charge, whether you will be able to make a profit, and how many orders to accept. BUSINESS CONCEPT Your idea is to bake fresh cookies to order, using any combination of ingredients that the buyer wants. The cookies will be ready for pickup at your apartment within an hour. Several factors will set you apart from competing products such as store-bought cookies. First, your cookies will be completely fresh. You will not bake any cookies before receiving the order, therefore, the buyer will be getting cookies that are literally hot out of the oven. Second, like Steve's Ice Cream, you will have a variety of ingredients available to add to the basic dough, including chocolate chips, M&M's, chopped Heath bars, coconut, walnuts, and raisins. Buyers will telephone in their orders and specify which of these ingredients they want in their cookies. You guarantee completely fresh cookies. In short, you will have the freshest, most exotic cook- ies anywhere, available right on campus.