Question: Burger Prince buys top- grade ground beef for $ 1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily.
Burger Prince buys top- grade ground beef for $ 1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 60 cents each. Labor, overhead, meat, buns, and condiments cost 50 cents per burger. Demand is normally distributed with a mean of 400 pounds per day and a standard deviation of 50 pounds per day. What daily order quantity is optimal?
Step by Step Solution
3.40 Rating (169 Votes )
There are 3 Steps involved in it
Given Purchase price 100 per pound Salvage value 80 per pound Burge... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
372-B-M-L-O-M (3359).docx
120 KBs Word File
