Scenario 13.2 - Fish or Chicken

question 47

Multiple Choice

Scenario 13.2 - Fish or Chicken
The taco stand in the atrium of the new College of Business building carried two items, fish tacos and chicken tacos. The fish tacos sell for $15 and are made out of $5 of ingredients and the chicken tacos sell for $10 and are made out of $4 of ingredients. Some days the taco stand owner has only chicken at his disposal, so he makes nothing but chicken tacos, and some days the opposite is true and he makes only fish tacos. Thus, he is able to estimate demand for chicken tacos at 2500 per day with a standard deviation of 600 and the demand for fish tacos at 2000 per day with a standard deviation of 500. Any fish or chicken tacos that do not sell at the end of the day can be sold for $1 each as bait. On days when both proteins are available, the taco stand manager prefers to make a few of each kind. All tacos are made in his home kitchen and then transported to campus. Due to time constraints and the capacity of his pickup truck bed, he is limited to beginning each day with only 3000 tacos.
-The taco stand manager decides to make exactly the same quantity of fish tacos as chicken tacos. If time and capacity are not an issue, and none of the other parameters in the scenario are changed, what would the retail price of chicken tacos need to be to make the optimal order quantities identical?

• A) $6.00
• B) $6.50
• C) $7.00
• D) $7.50

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