Question
Dave is struggling with his new side business. He and three friends have been spending Sundays during football season at Patriots' games selling bottles of
Dave is struggling with his new side business. He and three friends have been spending Sundays during football season at Patriots' games selling bottles of water. Dave's car is not reliable, so each game day they rent a car, drive to the stadium, park, and sell bottles of water to fans walking from wherever they parked to the stadium and again after the game on their way back to their cars. They buy plenty of bottled waters from a supplier for $0.50 each and return any extras for a full refund. At the game, they sell waters for $3.00 each.
Its a fun afternoon so his friends dont expect to get paid, but they do get a hot lunch which costs $25 for each of the four of them at the stadium. The cost of the car, gas, and parking is $160 for the day.
Every time they go it always turns out the same way. Dave sells 50 bottles of water, Mary sells 40, Paul sells 40 bottles, and Julie only sells 20 bottles. Mary complains that since Julie is only going to sell 20 bottles, they shouldnt bring her along. Julie says that her customers are loyal to her and wont buy from the others if she isnt there.
Questions:
1.) How profitable is the business (each week) right now?
2.) From a purely business perspective, should Dave continue to bring Julie to the games? Clearly and quantitatively justify your answer.
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