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5) Joe's Fish company sells fish caught by the pound at Pike's Place in Seattle. They sell the fish for $4.00 per pound. Alternatively they
5) Joe's Fish company sells fish caught by the pound at Pike's Place in Seattle. They sell the fish for $4.00 per pound. Alternatively they could sell directly to upscale restaurants for $5.00 per pound but would need to spend an extra 25 cents per pound to further clean and ice the fish for delivery. They would have to hire two delivery people at a cost of $1200 per week each and spend $1000 per week extra on truck rental, fuel and insurance. They would no longer have to rent the space at Pike's Place for $800 per week. Should they change their business model and start selling direct? We presume they were operating profitably in their original venture
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