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Janet From, a sophomore at Boise State intends to open a hoagie and sandwich stand outside of Boise State's baseball arena during home games. There are seven home games scheduled for the season. Janet is required to the pay a vendor's fee of $3,000 for the season. Her stand and other equipment will cost her $4,500 for the season. She estimates that each hoagie she sells will cost her $0.35. She has talked to friends at other universities who sell hoagies at games. Based on their information and the athletic department's forecast that each game will sell out, she anticipates that she will sell approximately 2,000 hoagies during each game.
1. What price should she charge for a hoagie in order to break even?
2. What factors might occur during the season that would alter the volume sold and thus the break-even price Janet might charge?
3. What price would you suggest that Janet charge for a hoagie to provide her with a reasonable profit while remaining competitive with other food vendors?
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