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Hwk2FinDrtSp09 - H ADM 2201 Homework II Spring Semester...

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H ADM 2201: Homework II Spring Semester 2009 Due Friday, Feb 13, by 2:00:00 pm, to Linda Stoker in 335 Statler Name (Print CLEARLY):_____________________________________________ Signature: _________________________________________________________ This cover page must be stapled to the homework you turn in. It is the front page of your homework. Make sure to fill out the information requested above. GRADING SHEET MAXIMUM SCORE SCORE EARNED 50
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H ADM 2201 Homework II Spring 2009 Question 1. Delta Airlines recently began a “buy-on-board” program for their Song Airline product. This gives passengers the opportunity to buy different food and beverage offerings on their flight, rather than from a restaurant in the airport. While most of the products are non-perishable, flight attendants are reporting significant waste of fresh sandwiches and salads—which must be disposed if not sold after one flight—on some flights, and not enough product on others. The following data for their chicken fajita wrap has been compiled: Each wrap costs Delta $2.50, and they sell them for $6.75 apiece on board. Due to limitations, the caterer, LSG SkyChefs, supplies the wraps in lots of 15 only , and there is only space for 60 wraps in the galley. An in-flight planning analyst has determined that the demand for wraps is as follows: 10 wraps 18% of the time; 25 wraps 16% of the time; 38 wraps 19% of the time; 40 wraps 23% of the time, and 60 wraps 24% of the time. Number of wraps purchased 10 25 38 40 60 Percent of the time 18% 16% 19% 23% 24% A) In order to maximize profits , how many wraps should be boarded on each flight?
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