PART 2:

Now, consider the numbers that the entrepreneur faces. The shop requires two employees, each of whom is paid $2,500 monthly. Equipment costs $1,000 monthly to maintain if it is in use. The building for the shop costs $3,050 monthly to maintain. These costs are incurred independently of the location being open or closed. The patio which contains 7 tables (out of 10 in the shop) costs nothing to maintain in the warmer months but would cost $1000 monthly (for heat lamps) from November to March.

The monthly demand for sandwiches isQ = 6,000-200P+60T, wherePis price per sandwich andTis the number of tables available in the shop. Ingredients for each sandwich cost $6 and the market price for sandwiches in town has settled at $8.

Based on these numbers, what is the optimal strategy (from the list above) for the entrepreneur managing the sandwich shop?