A Large Hotel?casino in Las Vegas Is Currently Under Construction

question 46

Essay

A large hotel?casino in Las Vegas is currently under construction. There will be an Italian restaurant in the hotel that will serve pizza. Management is trying to decide whether to make the pizza themselves or buy it frozen and simply heat it to customer order. There are two major sources of commercial?grade frozen pizza; Ma Ma's Products and the Chun?Yee Corporation. If they make the pizza themselves a substantial amount of preparation equipment will be required, along with skilled personnel. Frozen pizza needs either a conventional oven Ma Ma's) or a microwave Chun?Yee). Financial data is as shown below variable costs are estimated based on an average pizza purchase):
$\begin{array}{ccc} \underline{\text { Source} } & \underline{\text { Fixed Cost/year } }& \underline{ \text { Variable Cost }}\\\text { Make in-house } & \$ 7,870 & \$ 3.20 \\\text { Ma Ma's } & \$ 860 & \$ 5.60 \\\text { Chun-Yee } & \$ 2.460 & \$ 4.50\end{array}$

a. At what volume is either Ma Ma's or Chun?Yee acceptable?
b. At what volume is the company indifferent to either Chun?Yee or make in?house?

Assess the influence of external conditions on bargaining strategies.

Understand the factors that improve bargaining position when contracting with a supplier.

Comprehend the strategic advantages in sequential and non-strategic bargaining games.

Identify the significance of disagreement value in bargaining.

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Definitions:

Stimulation Probe

A stimulation probe is a device or instrument used to apply electrical or other forms of stimulation to biological tissues, often for research or therapeutic purposes.

Swirls

Patterns or shapes characterized by spirals or circular twists.

Frontal Lobes

The part of the cerebral cortex involved in reasoning, motor control, emotion, and language.

Creatively

In a manner that involves the use of imagination or original ideas to create something.