Question: Answer part a and b. Show equations and explain your work please. Will like when done The Churrozilla Food Truck produces specialty churros that are

Answer part a and b. Show equations and explain your work please. Will like when done
Answer part a and b. Show equations and explain your work please.

The Churrozilla Food Truck produces specialty churros that are primarily sold at special events, such as football games and concerts. Ricky, the owner, is trying to decide how many to produce for an upcoming game. During the game, Ricky can sell 2 Churros for $4 ( $24 per dozen). His competition is selling soft pretzels for \$7 each, so Ricky thinks he's giving the fans a bargain. However, when the game ends, any remaining churro dough is sold for $3.00/ dozen. It costs Ricky $8 to buy and make a dozen churros. It sounds expensive, but includes the cost of the vehicle, the fees that the stadium charges for the right to sell, in addition to the cost of the ingredients and supplies to make the churros. Ricky's estimate of demand for churros (in dozens) is the following: a. What is the service rate (or optimal fractile)? b. How many churros (to the nearest hundred dozen) should Ricky produce for the upcoming game

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!