The Cone Head House sells ice cream cones in a variety of flavours. Data for a recent week are as follows:

Revenue( 1000 cones @ $1.50)	$ 1,500
Cost of ingredients	530
Rent	300
Store attendant	600
Income	$ 70

The Cone Heads manager received a call from a university student club requesting a bid on 100 cones to be picked up in three days. The cones could be produced in advance by the store attendant during slack periods and then stored in the freezer. Each cone requires a special plastic cover that costs $0.05.

Required

1. (a) What are the managers decision options?

2. (b) What quantitative information is relevant for this decision?

3. (c) If the minimum acceptable price is ($530/1000) + $.05 = $0.58, explain why Cone Heads

   managers might be willing to sell at this price.