Business Math Unit 2 Learning Activity

Another factor is quality joe sells as many patties

Info iconThis preview shows pages 3–4. Sign up to view the full content.

View Full Document Right Arrow Icon
keep moving the product to make sure the oldest product gets used first? Another factor is quality. Joe sells as many patties as he does because people have come to expect a certain quality from his establishment. If the hamburger from the new contract is a lesser quality it can be a huge detriment to his customer base. On the other hand, if it is a better quality it can quickly improve his sales and help him get up to the 14 cases or more a week sales. Joe should taste test one for himself before deciding on the product. 12. The price per patty quoted by the new vendor is attractive, but is this a good deal for the restaurant? The price per patty quoted by the new vendor is a good deal providing the restaurant can handle that amount of volume and the quality is there as well. There is a substantial savings overall. This savings can be put to use in other was such as advertising. The advertising could increase his business at no additional expense to him. The additional sales would increase his bottom line making the savings expand far beyond just hamburger savings. 13. Beyond the cost savings, what other factors need to be considered before buying a lot more hamburgers than you have sold in the past? This appears to be the same question as #11. The factors that need to be considered are storage, freshness, quality and taste. 14. How can Joe make this deal more attractive to Charlie? Joe can make this deal more attractive to Charlie by leveraging the cost over the 13 weeks. Instead of paying for the first 50 cases all at once he could average it all together and pay accordingly. For example the total for the 230 cases is $7,680. Instead of paying $1,200 the first
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page3 / 4

Another factor is quality Joe sells as many patties as he...

This preview shows document pages 3 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online