Yogurt Supreme Sells Yogurt Cones in a Variety of Natural

question 39

Essay

Yogurt Supreme sells yogurt cones in a variety of natural flavours. Data for a recent month appear below:
Revenue (10,000 cones @ $0.93 each)$9,300
Cost of ingredients $3,500
Rent 2,500
Store attendant 1,800 7,800
Income $1,500
a)The manager has received a call from a club requesting a bid on 100 cones to be picked up in 3 days. The cones could be made up well in advance by the store attendant during slack periods. Each cone would require, however, a special plastic cover that costs $0.05. What is the minimum acceptable price per cone for this special order?
b)If the club is able to pay no more than the minimum price, what other considerations may affect the decision? List two.

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Definitions:

Low Risk Assets

Investments that have a lower probability of loss or less volatility compared to the market average.

Market Structure

The organizational and other characteristics of a market, including the nature of competition and the degree of market concentration.

Perfect Competition

A market structure characterized by a large number of buyers and sellers, identical products, free entry and exit, and perfect information, leading to efficient outcomes.

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service, and where entry of new competitors is obstructed.