Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jami Gourmen operates a food truck that primarily services workers at construction and industrial sites throughout the greater Portland area. Jami is particularly popular because

Jami Gourmen operates a food truck that primarily services workers at construction and industrial sites

throughout the greater Portland area. Jami is particularly popular because she only uses fresh ingredients

purchased each morning from a local distributor.

These include:

3 8-pound Swift turkey breasts (@ $20 each) $ 60

3 12-pound Butchers roast beefs (@ $42 each) $126

3 10-pound Hormel honey cured hams (@ $30 each) $ 90

3 8-pound Pineland Farms cheeses (@ $18 each) $ 54

300 sourdough rolls $ 60

miscellaneous condiments $ 30

In addition to this $420 in fixed daily food costs, Jami incurs $280 in other daily costs including gas, truck

payments, insurance, and wages for an assistant.

Jami slices each of the meats and cheeses into one-ounce portions first thing in the morning; then she

makes sandwiches from these ingredients, wraps them in plastic wrap, and stores them on the truck. She

has space to store up to 300 sandwiches and has no problem selling all the sandwiches she makes. The

following table gives the ounces of each ingredient in each of the five sandwiches she sells as well as her

current selling prices.

Sandwich price turkey beef ham cheese
Turkey de lite $2,75 4 0 0 1
beef boy $3,50 0 4 0 1
hungry ham $3,25 0 0 4 2
club $4,00 2 2 2 2
all meat $4,25 3 3 3 0

Questions:

  1. Formulate and solve for the optimal number of each type of sandwich to make daily. Given that she operates 200 days per year, what does Jami net annually from making and selling sandwiches?

  2. What is the shadow price and the range of feasibility for cheese? Give a precise interpretation.

  3. Jami is considering buying another bulk package of one of the meats or cheese. If only one additional bulk package is purchased, which would be the most profitable to Jami?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: Euston Quah, E.J. Mishan

5th Edition

0415350379, 9780415350372

More Books

Students also viewed these Accounting questions

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago

Question

How are values illustrated in the case?

Answered: 1 week ago

Question

Describe S. Truett Cathys self-concept and self-efficacy.

Answered: 1 week ago