Profit-sharing royalty scheme with the stall holders

Assignment Help Business Economics

Reference no: EM13840233

Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. CC estimates that on an average day there are 1,000 sunbathers evenly spread along the beach and that each sunbather will buy one crepe per day provided that the price plus any disutility cost does not exceed $5. Each sunbather incurs a disutility cost of getting up from resting to get a crepe and returning to their beach spot of 25 cents for every 1/4 mile the sunbather has to walk to get to the CC stall. Each crepe costs $0.50 to make and CC incurs a $40 overhead cost per day to operate a stall. How many franchises should CC award given that it determines the prices the stall holders can charge and that it will have a profit-sharing royalty scheme with the stall holders? What will be the price of a crepe at each stall?

Reference no: EM13840233

Questions Cloud

Explain why there is blurry line dividing objects : Explain why there is a blurry line dividing objects that are money from those that are not. Give examples of some clear-out cases and some borderline ones. Could the position of this blurry line change over time?

Determine the straight-line and double declining balance : Jack's construction company is considering the purchase of new equipment at a cost of $10,500; with an estimates salvage value of $500 and projected useful life of 4 years. Determine the straight-line (SL), sum of year's- digit (soyd) and double decl..

Annual compound interest : Suppose when you are 21 years old, you deposited $1000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age 65, 44 years later. How much more will be in your account if the ..

Inflation rates-what are the ex-post real interest rates : Assume that the inflation rates in 2010, 2011, and 2012 were 1%, 2%, and 3% respectively. During the same periods, nominal interest rates were 5%, 5%, and 6%, respectively. What are the ex-post real interest rates in 2010, 2011, and 2012?

Profit-sharing royalty scheme with the stall holders : Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. How many franchises should CC award given that it determines the prices the stall holders can charge and that it will h..

Analyzing two-good production possibilities curve : The U.S. continues to experience a relatively high level of unemployment in its workforce. When analyzing a two-good production possibilities curve (PPC), where would you expect to find a point that reflects this unemployment?

What first cost should be assigned to the existing system : A material handling system was purchased 3 years ago for $120,537. Two years ago it required substantial upgrading at a cost of $14,340. It once again is requiring an upgrading cost of $24,925. Alternately, a new system can be purchased today at a co..

A history of the kings of kashmir : Who wrote the Rajatarangini, a history of the kings of Kashmir

Shami dynasty in the indian subcontinent : Who was the founder of the Shami dynasty in the Indian Subcontinent?

User Account

All Pages