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Jami Gourmen operates a food truck that primarily services workers at construction and industrial sites

throughout the greater Portland area. Jami is particularly popular because she only uses fresh ingredients

purchased each morning from a local distributor. These include:

3 8-pound Swift turkey breasts (@ $20 each) $ 60

3 12-pound Butchers roast beefs (@ $42 each) $126

3 10-pound Hormel honey cured hams (@ $30 each) $ 90

3 8-pound Pineland Farms cheeses (@ $18 each) $ 54

300 sourdough rolls $ 60

miscellaneous condiments $ 30

In addition to this $420 in fixed daily food costs, Jami incurs $280 in other daily costs including gas, truck

payments, insurance, and wages for an assistant.

Jami slices each of the meats and cheeses into one-ounce portions first thing in the morning; then she

makes sandwiches from these ingredients, wraps them in plastic wrap, and stores them on the truck. She

has space to store up to 300 sandwiches and has no problem selling all the sandwiches she makes. The

following table gives the ounces of each ingredient in each of the five sandwiches she sells as well as her

current selling prices.

Sandwich

Price

Turkey

Beef

Ham

Cheese

Turkey De-Lite

$2.75

4

0

0

1

Beef Boy

$3.50

0

4

0

1

Hungry Ham

$3.25

0

0

4

2

Club

$4.00

2

2

2

2

All Meat

$4.25

3

3

3

0

Question: Suppose, as a cost-savings strategy, Jami decided to reduce the amount of meat she puts on the All Meat sandwich to 2.5 ounces of each of the three meats: turkey, beef, and ham. She has also decided that she will only make 3 out of the 5 sandwiches, and not more than 150 of any one of those three sandwiches. How many Beef Boy sandwiches should Jami make?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92796753

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