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Special order managers decision options

Special Order

The Cone Head House sells ice cream cones in a variety of flavors. Data for a recent week appear here:
Revenue (1,000 cones @ $1.50 each) $1,500
Cost of ingredients 530
Rent 300
Store attendant 600
Income $ 70
The Cone Heads manager received a call from a university student club requesting a bid on 100 cones to be picked up in three days. The cones could be produced in advance by the store attendant during slack periods and then stored in the freezer. Each cone requires a special plastic cover that costs $.05.
A. What are the managers decision options?
B. What quantitative information is relevant for this decision?
C. Using the general decision rule, what is the minimum acceptable price per cone for this special order?
D. Explain why Cone Heads managers might be willing to sell cones at the price you calculated in part C.


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Thus, the following is a "start" should add your own additional words to customize the answers to your own individual style of writing (otherwise your teacher would notice that someone else other than you wrote the answers)......hope ...

Solution Summary

The special order managers decision options are examined.