Question
Shop&Save received an offer of contract from a well to do family who want to entertain all children in housing area. The scheme is to
Shop&Save received an offer of contract from a well to do family who want to entertain all children in housing area. The scheme is to allow every children in the neighbourhood to enjoy the store'sice-cream, Ice-Sluppy and Milo drink to a maximum of RM 10 per person.This will be done using mobile truckers that will visit every neighbourhoodand invite all children to order the refreshment of their choice.
The Family has asked for a flat7% discount on all the items purchased by the children. It is estimated that 5,000 truckers will be needed. Shop&Save is expected to spend RM 500 on each trucker as temporary modification. They expect to pay each truckers another RM 1,000 for the task.
It is expected that 10,000,000 childrens will be participating in this celebration in the whole Malaysia - with over 5,000 truckers parking their neighbourhood roadside.
Required :
- Evaluate the proposal above for the consideration of the board of directors of Shop&save .
(8 marks )
- Should Sho&Save take up the contract offer ?
( 2 marks )
- What are the qualitative considerations that should be taken into account in the decision ?
( 5 marks )
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