Cathy Gwynn for a class project is analyzing a "Quick Shop" grocery store. The store emphasizes quick service, a limited assortment of grocery items, and higher prices. Cathy wants to see if the store hours (currently 0600 to 0100) can be changed to make the store more profitable. Time Period Daily Sales in the Time Period 0600-0700 $40 0700-0800 70 0800-0900 120 0900-1200 400 1200-1500 450 1500-1800 500 1800-2000 600 2000-2200 200 2200-2300 50 2300-2400 85 2400-0100 40 The cost ofthe groceries sold averages 65% of sales. The incremental cost to keep the store open, including the clerk's wage and other operating costs, is S23 per hour. To maximize profit, when should the store be opened, and when should it be closed?
Cathy Gwynn for a class project is analyzing a "Quick Shop" grocery store. The store emphasizes quick service, a limited assortment of grocery items, and higher prices. Cathy wants to see if the store hours (currently 0600 to 0100) can be changed to make the store more profitable.
|
Time Period |
Daily Sales in the Time Period |
|
0600-0700 |
$40 |
|
0700-0800 |
70 |
|
0800-0900 |
120 |
|
0900-1200 |
400 |
|
1200-1500 |
450 |
|
1500-1800 |
500 |
|
1800-2000 |
600 |
|
2000-2200 |
200 |
|
2200-2300 |
50 |
|
2300-2400 |
85 |
|
2400-0100 |
40 |
The cost ofthe groceries sold averages 65% of sales. The incremental cost to keep the store open, including the clerk's wage and other operating costs, is S23 per hour. To maximize profit, when should the store be opened, and when should it be closed?
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