Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall. A )Find the optimal number of stalls for Maribel? B) What is the profit at optimal number of stalls?
Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall. A )Find the optimal number of stalls for Maribel? B) What is the profit at optimal number of stalls?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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7. Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall.
A )Find the optimal number of stalls for Maribel?
B) What is the profit at optimal number of stalls?
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