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The Gingerbread lady has a part time business of proxlucing a at Christmas craft shows. Production starts in late October weeks. To meet Icaltlh codes,

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The Gingerbread lady has a part time business of proxlucing a at Christmas craft shows. Production starts in late October weeks. To meet Icaltlh codes, she rents a kitchen at a decurates the houses there. Sh on Saturdays and can produce Consee Materials and labor costs ameunt to $2.50 per house ancl selling and runs four c pearby preschool and bakes and e can only use the kitchen on Friday evenings and all day roduce ,300 heaises in one weekend. The rent per weekend is $60 gbed lady can produce, at most, 1,200 lhouses, for the season. Gingerbread each bazaar. Pour baraars have been The houses are sold at vatious bazaars throughout the community. "he Lady charges whatever the market will bear at announced this year. F or some reason, all of this year's bazaars are being held at the same de time, thus forcing the Gingerbread lady to choose which bazaar she vi attend. A zaar with the anticipated selling price and specific co:ts is as follows: iternative As private athletic club with an elite membership sponsors this two- zaar. It charges a flat fee of $25 per day for each seller. The Gingerbread Lady feels a selling price of $6.75 pei house is appropmiate. From past experience, she know sell 200 houses with follorvup orders for 150 houses Alternative : A two-day reighborhood bazaar is held in the lower-midile income section of the city. She will charge $5.95 per house and must pay a flat fce of $15 per day She can sell, at most, 400 houes. Alternative C: This two day bazaar is held in a community center to another lower- uiicddll income section of the chy. IHere the price of each house would Ibe a bit lower at $5.45 The center charges $12 per day fr each seller. Ilatrxl on last t'ear's records, the Gingeibread Lady can sell 500 houses in the two days. Alternative D: The local university sponsors a three-day Iazaar end charges eaclh seller 10 percent of the pross re enue from sales as a fee. liecause of the stuclent popula- .tlon, the Gingerbread Lndy wil charge $5.00 per hotse. Iht she thinks she can sell 600 honses during the three days. She has alrendy determined that it is not worthwhile to be in business if she cannot make a thinimum of $1.25 per house, since other income options would give her at least Required: 1. I'repare an analysis showingg whicls bazaar, if any, the Gingerbread is Jy should pick to attend this year 2. If the Gingerbread Lady could hire somcone to handlle the next mort a ttractive (prof itable), bazaar for her, what s the maximum amount she could pay anrd at least brealk even (after her minimum profit per house)? 3. II the Gingerbread lady could lire uxher people to handle additiona bazaars and pay them 50 percent of any profits over $1:25 per house as their wage, to which bazaars shoultl she commit? The Gingerbread lady has a part time business of proxlucing a at Christmas craft shows. Production starts in late October weeks. To meet Icaltlh codes, she rents a kitchen at a decurates the houses there. Sh on Saturdays and can produce Consee Materials and labor costs ameunt to $2.50 per house ancl selling and runs four c pearby preschool and bakes and e can only use the kitchen on Friday evenings and all day roduce ,300 heaises in one weekend. The rent per weekend is $60 gbed lady can produce, at most, 1,200 lhouses, for the season. Gingerbread each bazaar. Pour baraars have been The houses are sold at vatious bazaars throughout the community. "he Lady charges whatever the market will bear at announced this year. F or some reason, all of this year's bazaars are being held at the same de time, thus forcing the Gingerbread lady to choose which bazaar she vi attend. A zaar with the anticipated selling price and specific co:ts is as follows: iternative As private athletic club with an elite membership sponsors this two- zaar. It charges a flat fee of $25 per day for each seller. The Gingerbread Lady feels a selling price of $6.75 pei house is appropmiate. From past experience, she know sell 200 houses with follorvup orders for 150 houses Alternative : A two-day reighborhood bazaar is held in the lower-midile income section of the city. She will charge $5.95 per house and must pay a flat fce of $15 per day She can sell, at most, 400 houes. Alternative C: This two day bazaar is held in a community center to another lower- uiicddll income section of the chy. IHere the price of each house would Ibe a bit lower at $5.45 The center charges $12 per day fr each seller. Ilatrxl on last t'ear's records, the Gingeibread Lady can sell 500 houses in the two days. Alternative D: The local university sponsors a three-day Iazaar end charges eaclh seller 10 percent of the pross re enue from sales as a fee. liecause of the stuclent popula- .tlon, the Gingerbread Lndy wil charge $5.00 per hotse. Iht she thinks she can sell 600 honses during the three days. She has alrendy determined that it is not worthwhile to be in business if she cannot make a thinimum of $1.25 per house, since other income options would give her at least Required: 1. I'repare an analysis showingg whicls bazaar, if any, the Gingerbread is Jy should pick to attend this year 2. If the Gingerbread Lady could hire somcone to handlle the next mort a ttractive (prof itable), bazaar for her, what s the maximum amount she could pay anrd at least brealk even (after her minimum profit per house)? 3. II the Gingerbread lady could lire uxher people to handle additiona bazaars and pay them 50 percent of any profits over $1:25 per house as their wage, to which bazaars shoultl she commit

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