5. If the average selling price per sandwich is $2.00 and the cost of materials and labor is $1.25, what is the daily profit

if Ajax sells 2,100 sandwiches (unsold sandwiches are discarded at the end of the day)? What if it is a really bad day

and it only sells 1,500?

6. Supposing a new bread supplier provides bread that increases the shelf life for sandwiches from one day to two.

What does this imply for the calculations in problem 5? What kind of MPC system linkages would be required from

Ajax to its customers?

INDE440

Assignment 2

Due 09/07/2023

7. Suppose that in one college location Ajax typically sells 500 tuna and 500 roast beef sandwiches per day. Every

week, the sales of roast beef are going down by 10 percent because some students are concerned about eating beef.

About one-half of these students now buy tuna instead. How many of each sandwich should be made per day for the

third week?

8. Continuing with the data in problems 5 and 7, how much are the profits to Ajax reduced in problem 6 by the new

student behavior in the third week?