Economics

This case relates to a senior at Tech and she is contemplating investing different ways to finance her final year at the university. Julia is considering leasing a food booth located outside of the university stadium in order to sell her food products. Julia is propelled to start this business because she realizes food sells very well at every home game. Julia also realizes she has to pay $1,000 per game for a booth and the booth comes with a limited space. Julia notes that vendors outside of the stadium have basically two choices pertaining to what can be sold in the booth, the choices are food or drinks and not both at the same time. She recons that selling slices of cheese pizza, hot dogs and barbecue sandwiches are very popular food among fans. The food items are sold during the hours before the game starts and during half time. Furthermore, she knows it would be very impossible to prepare her food items while she is selling them. Evidently, she would have to prepare the food ahead of time and then store them in a warm oven.

She decides to lease a warm oven at a price of $600 for six-game home season. The oven consists of 16 shelves, while each shelf is measured to be 3 feet by 4 feet. Julia suddenly exhibits a contract with a local pizza delivery company to deliver 14- inch cheese pizza twice each game. Each box of pizza will cost her the amount of $6, which will include 8 slices. She also goes on to estimate it will cost her $0.45 for each hot dog and $0.90 for each barbecue sandwich if she makes the barbecue herself the night before the game starts. She then measures a hot dog and realizes it occupies about 16 in.2 of space as compare to a barbecue sandwich, which occupies 25 in.2. Julia decides to sell a slice of pizza and a hot dog for the price of $1.50 apiece and a barbecue sandwich for $2.25. Julia has $1,500 in cash available to purchase and prepare the food items for the first home game. In addition, she plans to purchase her ingredients with the...