Question
Fish company sells fish caught by the pound at Pikes Place in Seattle. They sell fish for $5.00 per pound. Alternatively they could sell directly
Fish company sells fish caught by the pound at Pikes Place in Seattle.
They sell fish for $5.00 per pound. Alternatively they could sell directly to upscale restaurants for $7.00 per pound but would need to spend an extra 60 cents per pound to further clean and ice fish for delivery. They would have to hire three delivery people at a cost of $1200 per week each and spend $1100 per week extra on truck rental, fuel and insurance. They would no longer have to rent the space at Pikes Place for $900 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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