Essay on Mat540 Week 8 Assignment

1109 Words Feb 19th, 2016 5 Pages
MAT540 Week 8 Assignment
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Case Study Background:
Sam Allen is a parent of several students at Mattson Area High School in a small community southwest of Dallas, TX. He is investigating different ways to finance his daughter’s first year at Southwest Texas State University – and he is considering leasing a food booth outside the Mattson Area HS stadium at home football games this fall.
Football is a big family activity on Friday nights throughout most high schools in Texas. In fact, at least one TV series and several movies have been made depicting the strong interest in high school football in Texas. Mattson Area is one of the larger
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For $1,200, he can lease a warming oven for the six-game home season. The oven has 8 shelves, and each shelf is 3 feet by 6 feet. He plans to fill the oven with the four food items before the game and then again before half time.
Sam has negotiated with a local pizza delivery company to deliver 16-inch square cheese pizzas twice each game – 2 hours before the game and right after the opening kickoff. Each pizza will cost her $10 and will include 8 slices. He estimates that it will cost him $0.90 for each hot dog (hot dog, bun, and condiments), and $2.00 for each barbecue sandwich if he makes the barbecue himself the night before the game. The soft pretzels are likely to cost about $0.75 per pretzel.
He measured a hot dog and found that it takes up about 16 square inches of space, whereas a barbecue sandwich takes up about 25 square inches of space. He would only put whole pizzas into the warming over; not a fraction of a pizza. He also finds that the soft salted pretzel take up about 20 square inches of space. He plans to sell a slice of pizza for $2.50, a hot dog for $3.00, a soft pretzel for $2.00, and a barbeque sandwich for $5.00.
Sam had $2,500 in case available to purchase and prepare the food items for the first home game; for the remaining five games he will purchase his ingredients with money he has made from the previous game. He has decided that each game should be self-sufficient for food costs and that his food costs should

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