Question

a. If Food Max in Problem 46 could increase its shelf space for half-gallon cartons of milk, how much would profit increase per carton?
b. If Food Max could get the local dairy to increase the amount of milk it could supply each week, would it increase profit?
c. Food Max is considering discounting its own brand in order to increase sales. If it were to do so, it would decrease the profit margin for its own brand to $0.86 per carton, but it would cut the demand for the national brand relative to its own brand in half. Discuss whether the store should implement the price discount.



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  • CreatedJuly 17, 2014
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