Hamburgers Are on the Menu Tomorrow at a School Cafeteria

question 128

Multiple Choice

Hamburgers are on the menu tomorrow at a school cafeteria and the manager needs to decide how many to have ready for the lunch hour. Each hamburger costs the school $1.85 and is sold for $3.50. Leftover hamburgers have no monetary value. The manager expects demand tomorrow to be 100, 150, 200, or 250 hamburgers and would like to prepare one of these four quantities for lunchtime. If the manager uses the maximax criterion, how many hamburgers will be prepared?

• A)250
• B)200
• C)150
• D)100

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Definitions:

Collections

Collections involve the processes and activities undertaken by a business to pursue and receive payments owed by customers or debtors.

Projected Sales

An estimate of the amount of revenue that a company expects to earn in a future period from selling goods or services.

Sales Estimates

Projections or predictions about the future sales revenue of a business within a certain period, based on historical data, market analysis, and other factors.

Bottom-Up Process

The bottom-up process is an approach to planning or decision-making that starts at the operational or tactical level and proceeds upwards, allowing decisions to be made based on detailed data and observations.