Question
The Sheridan House sells ice cream cones in a variety of flavours. Data for a recent week appear here: Revenue (700 cones at $1.53 each)
The Sheridan House sells ice cream cones in a variety of flavours. Data for a recent week appear here:
Revenue (700 cones at $1.53 each) | $ | 1,071 | |
Cost of ingredients | 385 | ||
Rent | 245 | ||
Store attendant |
| 392 | |
Income | $ | 49 |
The Sheridan Houses 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 $0.07.
What quantitative information is relevant for this decision?
Cost of ingredients | Relevant or Irrelevant | |
Rent | Relevant or Irrelevant | |
Store attendant | Relevant or Irrelevant | |
Special plastic cover | Relevant or Irrelevant |
Using the general decision rule, what is the minimum acceptable price per cone for this special order? (Round entry to 2 decimal places, e.g. 15.25.)
Price | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started