Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I'm interested in finding the answers in b. Feedback and like will be given, thanks. Crepe Creations is considering franchising its unique brand of crepes
I'm interested in finding the answers in b. Feedback and like will be given, thanks.
Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. CC estimates that on an average day there are LOUD sunbathers evenly spread along the beach and that each sunbathcr will buy one crepe per day provided that they arc priced at no more than $5. The effort of getting up from the sand to get a crepe and return to the sunbed is estimated at 25 cents for every 1.\": mile the sunbather is from a stall. Each crepe costs 5t] cents to make and it costs $40 per day to operate a stall no matter how many crepes are made. a. How many franchises should Crepe Creations award given that it determines the prices the stall-holders can charge and that it will have a profit sharing royalty scheme with the stall-holders? What will be the price of a crepe at each stall? b. Suppose instead that each stall holder delivers the crepes in its designated territory. How many franchises should now be awarded, given that the travel costs of the stall- holders are the same as the sunbathers? 1|What if the stall-holde rs' transportation costs are only 12.5 cents per U4 mile from a sunbatherStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started