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John owns a shop called Deluxe Burgers that sells different types of burgers. Most of his customers are the people who work in the offices

John owns a shop called Deluxe Burgers that sells different types of burgers. Most of his customers are the people who work in the offices nearby and who come to his shop during working hours at lunchtime. John wants to maximise the profit he makes and does not care about the quality of the product he sells. John sells his burgers for a range of prices depending on the quality of the ingredients. John is considering what type of burger he should sell to maximise his profit. He currently sells three types of burgers but wants to sell only one type because he is throwing away too much food at the moment so he has to choose which one to keep and get rid of two of the burgers he currently makes. He wants to know how much profit he can make for one month and compare to find which burger is the best one to sell.

Plain burgers:

These are made with plain bread rolls, and the rolls are not nice if they are too old and become very soft before the customers can finish eating the burger. The rolls will only cost John 80 cents each. The filling for the burgers will cost $3.30 per burger and Johns marketing friend believes John could sell about 520 burgers per week using these rolls and ingredients. He plans to sell the burgers for $6.50 each.

Premium burgers:

These burgers are made with premium quality bread rolls that contain more gluten and the rolls are still delicious to eat before the customers finish eating the burger. The rolls will cost $1.20 each. These burgers have fresh ingredients such as tomato included to try to tempt more customers because they look healthy. The ingredients to put in the burgers will cost on average $4.1 per burger. Johns marketing friend believes John could sell about 510 burgers per week using these rolls and ingredients and he will probably get more return customers. He plans to sell the burgers for $7.70 each. John estimates there will be a 10% increase in sales of the burgers every week during the month.

Deluxe burgers:

These burgers are made with high quality rolls and definitely wont go soggy or floppy before the customers finish eating their burger. Also these rolls are light and are delicious when they are being eaten and they are not chewy or tough. The rolls will cost John $1.40 each. The ingredients which are also high quality will cost $4.90 per burger. Johns marketing friend believes John could sell about 450 burgers per week using these bread rolls and ingredients and he will also get a lot of return customers. He plans to sell the burgers for $9.00 each. John estimates there will be a 15% increase in sales of the burgers every week for the rest of the month.

REQUIRED:

John wants to compare the three options using one month of profit. Make sure you calculate the profit for one month. Using the problem-solving model from Topic 1, explain which choice John will pick. Show any calculations.

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