Julia`S Food Booth After She Borrows Money
A.Julia would make $1150 profit after paying all expenses after the first game.And then she would make $1721.22 for the rest of the games.
Since she will be clearing her number of $1000 profit per game, she should lease the booth.
B. If she borrows money from a friend she would increase her profit. She would borrow $380.82 from a friend and she will make $571.22 more profit. The factor that constraints her from borrowing even more money is the total area of space that the warming oven can hold of hot dogs, pizza and BBQ sandwiches.
C. Yes, this is something she can reasonably do, since she is making a profit of $1721.22 a game $100 would not be hard to pay for some help. And she should definitely do this because she needs to make a total of 784 hot dogs before the game and before half time.
D. One thing that could go wrong would be if her friend was unable to help one game and Julia was unable to make all the hot dogs herself. Another thing that could go wrong would be if her costumers were unsatisfied with the taste of food, or if the warming oven were not operating properly and some of the food came out too cold. Customers would be less likely to come back to the booth the next game or again at half time.
Even under these uncertainties Julia should lease the booth because she will more than likely have at least an average of over $1000 of profit for the 6 games.