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?

Explain the phenomenon of self-fulfilling prophecy and its implications in educational settings.

Understand Festinger's social comparison theory, including upward and downward comparisons.

Understand the misconceptions and knowledge gaps between senior management and lower-level employees regarding organizational awareness.

Identify the objectives and reasons behind union formation and employee drive for union representation.

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Definitions:

Public Good

A good or service offered to every member of a society for free, supplied by either government entities or private individuals or groups, without seeking financial gain.

Collective Willingness

The aggregate propensity of a group to invest in goods, services, or actions that benefit the community or society as a whole.

Public Good

This refers to goods or services made available to all societal members at no cost, delivered by the government or private sectors, with no intent of making a profit.

Marginal Cost

The growth in the cumulative expense incurred from creating one more unit of a product or service.